Imperial completes Wholesome share sale
by Jeff Gelski
SUGAR LAND, TEXAS — Imperial Sugar Co. has completed the sale of its 50% interest in Wholesome Sweeteners, Inc. to an affiliate of Arlon Group, a private investment group. The net proceeds of $60.4 million in cash are subject to adjustment upon determination of Wholesome Sweeteners’ closing date working capital.
Formed in 2001, Wholesome Sweeteners previously was a 50/50 joint venture between Imperial Sugar and Edward Billington and Son, Ltd. of Liverpool, England. Wholesome Sweeteners supplies organic natural, unrefined sweeteners, including those certified as Fair Trade, to the North American market.
Imperial Sugar said net proceeds of the sale were used to reduce borrowings under its revolving line of credit. Outstanding borrowings under the credit agreement were $7.8 million after receipt of the sales proceeds. Imperial Sugar expects to report a gain on the sale of about $38 million in its fiscal third quarter ending June 30.