NEW YORK: US Sugar has reached an agreement to buy the business and assets of its local rival Imperial Sugar from commodities trader Louis Dreyfus Company, the companies said in statements on Wednesday.
Imperial Sugar operates a refinery at Port Wentworth in Savannah, Georgia, and a sugar transfer and liquification facility in Ludlow, Kentucky. It was bought by Louis Dreyfus in 2012 for $78 million.
US Sugar farms 200,000 acres (80,940 hectares) of sugar cane and operates a large milling and refining installation in Clewiston, Florida.
The company expects synergy gains from the combination with Imperial Sugar and looks to expand its share in the US market of production and sales.
Louis Dreyfus said the sale will allow it to concentrate on its global sugar trading business. The company recently announced another deal to sell a sugar production business.
No financial details were disclosed, but US Sugar said the transaction will be financed through committed debt financing provided by Wells Fargo Bank and PGIM Agricultural Finance. Wells Fargo Securities Llc is serving as the exclusive financial adviser to US Sugar.
The transaction is expected to be concluded later this year, the companies said, following an antitrust review.
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