A NORTHERN Ireland-based international commodity trader has sealed the largest corporate deal in the North this year by agreeing to acquire a division of Tate Lyle for £67 million in cash.
The London-listed ingredients giant has confirmed that Belfast-based WR Barnett has agreed to purchase its molasses business.
WR Barnett, which is privately owned, directly employs more than 300 people in the North and trades primarily in grain, animal feed ingredients and vegetable oils.
The company, which never seeks publicity, also has significant interests in port facilities, animal feeds manufacturing and is also active in horse breeding.
Last year WR Barnett sold ICS, a specialist IT organisation with estimated annual revenues of £100 million, to Equiniti for an undisclosed amount.
Tate Lyle said completion of the molasses deal was conditional on employee consultation which the group said would take place over the next few weeks.
About 50 people, employed in a key molasses operation based in Liverpool, are likely to transfer to WR Barnett.
The move will mark the end of the London group’s 150-year association with the city of Liverpool.
Henry Tate, a former shop keeper, first established a sugar cane refinery in Liverpool in 1862.
Tate Lyle molasses business also includes a global molasses trading desk based in London, global marketing operations and third party storage operations in the UK.
According to the group, these businesses had external sales of £228 million and made an operating profit of £13 million in the year to the end of March last. Collectively it also had gross assets of £81 million at that date.
Tate Lyle said the proceeds of the sale from its molasses business would be used to reduce net debt.
Javed Ahmed, its chief executive, said: “Tate Lyle’s clear priority is to grow its specialty food ingredients business, supported by cash generated from bulk ingredients. This disposal represents another important step as we focus, fix and grow our business.”
WR Barnett did not comment on the acquisition but, according to Paul McBride of McGrigors, the law firm which acted on its behalf it was a “great deal for our client”.
