Südzucker AG

M&A Activity • Jun 29, 2001

News Details

Ad-hoc | 29 June 2001 08:48

Südzucker AG english

Ad hoc announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Südzucker buys the French sugar producer Saint Louis Sucre Intention to sell Schöller Holding The Südzucker Group, the biggest sugar producer in Europe takes the opportunity and strengthens its core business by acquiring the second largest sugar producer in France, Saint Louis Sucre S.A. (SLS), Paris. The purchase will be realised by the Belgian Südzucker subsidiary, Raffinerie Tirlemontoise, which acquires a 99,7 % share. Thus, Südzucker strengthens its leading position in an enlarging European Community. In consequence, this gives Südzucker the possibility to increase its European sugar quota from 16,4 % to 21,4 % and the total production comes up to nearly 5 Mio. t sugar including 800.000 t in Eastern Europe. In the fiscal year 2000, SLS achieved a turnover of 1,0 Mrd. EUR with a total of 1.700 employees. With an annual beet sugar production in five factories of about 900.000 t and a quota in the EU of 730.000 t, SLS can surely be considered as one of the most efficient sugar producers in the European Community. Furthermore divisions and shares that fit perfectly the Südzucker business such as refinery of raw sugar and production of bio ethanol will be added. SLS holds a 13,8 % share in Ebro Puleva, the biggest Spanish sugar producer, and Eastern Sugar – a Joint Venture between SLS and Tate & Lyle – matches very well the Eastern Europe activities. Beginning 2000, SLS has been sold by the French Group Worms & Cie in a Leveraged Buy Out (LBO) to Financiere Franklin Roosevelt. Südzucker and the sellers of this society, Inveparco S.A. and Worms & Cie, agreed upon a purchase price of 1,6 Mrd. EUR – LBO debts included. The purchase is subject to the normal antitrust approval. The transaction will be financed by about 60 % own resources and about 40 % debts. This includes also the formation of an authorised capital of 400 Mio. EUR and the issue of a bond of about 400 Mio. EUR. Thus the solid financial structures of Südzucker remain unchanged. This purchase is exactly in line with Südzucker’s strategy to produce sugar in the best European beet growing regions. The structures in the French factories are really the very best and there is a lot of room for further evolution and development. So SLS will contribute to a sustained increase in profitability of the Südzucker Group and generate additional and successful growth in the long run. Looked at from this background of focussing on the core business, the combination of different resources appears to be the best way for a successful expansion of the Group. Südzucker has thus decided to sell Schöller Holding. In this connection, negotiations are under way with Nestle S.A., Vevey. end of ad hoc announcement (c) DGAP 29.06.2001 ——————————————————————————– WKN: 729700; Index: MDAX Listed: Amtlicher Handel in Berlin, Düsseldorf, Frankfurt, Hamburg, München und Stuttgart; Freiverkehr in Hannover 290848 Jun 01