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Imperial Sugar to form joint venture with Sugar Growers and Refiners and Cargill

Posted on: Fri, 20 Nov 2009 14:01:00 EST

Symbols: IPSU

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Nov 20, 2009 (Datamonitor Financial Deals Tracker via COMTEX) --
IPSU | Quote | Chart | News | PowerRating -- Imperial Sugar Company has agreed to form a three-way joint venture with Sugar Growers and Refiners, Inc. and Cargill, Incorporated to construct and operate a new cane sugar refinery in Gramercy, Louisiana, US adjacent to Imperial's existing sugar refinery.

Imperial Sugar is processor and marketer of refined sugar, while Sugar Growers and Refiners is a marketing co-operative representing eight sugar cane mills. Cargill is a producer and marketer of food, agricultural, financial,and industrial products and services. All the parties involved in the transaction are based in the US.

The joint venture, Louisiana Sugar Refining, LLC, which is owned one-third by each member, closed financing agreements aggregating $145 million to provide construction and working capital financing for the project.

Each member of joint venture agreed to contribute $30 million in cash or assets as equity to capitalize the venture. Imperial's contribution, which will occur in three stages, consists of the existing refinery assets with a book value of approximately $22 million, including approximately 207 acres of land.

Deal Value (US$ Million) 90
Deal Type                Partnership
Sub-Category             Joint Venture
Deal Status              Announced: 2009-11-19

Deal Participants

Partner 1 (Company) Imperial Sugar Company
Partner 2 (Company) Sugar Growers and Refiners, Inc.
Partner 3 (Company) Cargill, Incorporated

Deal Rationale

The transaction enables Imperial to retire its existing refinery with dated technology for a share of the new refinery without a significant capital outlay by Imperial.

For full details on Imperial Sugar Company (IPSU) IPSU. Imperial Sugar Company (IPSU) has Short Term PowerRatings at TradingMarkets. Details on Imperial Sugar Company (IPSU) Short Term PowerRatings is available at This Link.

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