Louisiana Sugar Refining makes shifts in ownership
Dec. 19, 2011
by Eric Schroeder
SUGAR LAND, TEXAS — Cargill and Sugar Growers and Refiners, Inc. have acquired Imperial Sugar Co.’s one-third interest in the Louisiana Sugar Refining L.L.C. (LSR) joint venture for $18 million, including $14.2 million of cash at closing and $3.8 million payable over a 21-month period. Cargill and Sugar Growers now each own a 50% stake in LSR.
“The new partnership marries Cargill’s 140 years of food industry expertise with the Louisiana sugar farmers’ 200 years of collective wisdom in growing and milling sugar cane,” said Red Geurts, chief executive officer and general manager of LSR. “As we are in the process of starting up the newest sugar refinery in the industry, it’s very exciting to know we have two very strong partners with a shared vision of making the Louisiana cane sugar industry a strong and vibrant supplier of sugar to the food industry and consumers in the U.S.”
Imperial Sugar said it opted to sell its LSR interest and certain idle Louisiana real estate parcels rather than make additional capital contributions needed by the venture.
“The company will continue to operate its small bag packaging facility in Gramercy (La.) with refined sugar purchased from LSR under an amended supply agreement with a minimum five-year term,” Imperial Sugar said.