| Sugar beet farmers in four states have subscribed enough
acres to a growers' cooperative to buy the Western Sugar Co., it was
announced Tuesday.
Western has sugar refineries in Billings and Lovell, Wyo., as well as
two each in Nebraska and Colorado. Sufficent support The board of
directors of the Rocky Mountain Sugar Growers Cooperative announced that a
preliminary tabulation of enrollments indicated there is sufficient
support for the buyout of The Western Sugar Co. to proceed.
About 1,000 farmers committed themselves to invest $185 per acre of
beets, said Randon Wilson, attorney for the co-op. At least 150,000 acres
were subscribed.
Participation was a little light in Colorado and Nebraska, as expected.
Additional subscriptions will be welcome in those areas to improve the
economics of the buyout, and the board has extended the opportunity to
subscribe at $200 per acre in those states through Feb. 16.
"We increased the price per acre to the late subscriptions to keep
faith with those who met the deadline," Wilson said. Friday was the
deadline for beet farmers to commit their acres and money.
Late subscriptions must be accompanied by a down payment of $50 per
acre to qualify for financing at $150 per acre. Anyone wishing to
subscribe and who has not received a subscription agreement should contact
a member of the board or the Salt Lake City office at (801) 534-7283.
The response in Wyoming and Montana was solid, as expected, Wilson
said. It is not anticipated that additional acreage will be required
there.
A group of businessmen in Nebraska has proposed to fund a pool of acres
for growers who cannot afford to acquire the acres now but who wish to
grow sugar beets.
Rick Dorn of Hardin, chairman of the Rocky Mountain Sugar Growers
Cooperative, said he was delighted with the response of the growers
throughout the system.
"We are confident that reluctant growers will come forward now
that the buyout is assured," he said.
Western Sugar Co. was put up for sale last summer by its parent firm,
Tate & Lyle, PLC of London. Tate & Lyle, the largest sweetener
company in the world, has suffered revenue setbacks in the past year and
has been divesting itself of several overseas properties, in Australia as
well as the United States.
Tate & Lyle offered the Western Sugar Co. to its 1,100 growers for
$78 million or half of its estimated liquidation value.
Wilson reiterated Tuesday his goal of a preliminary closing of the deal
by the end of February and a final close by the end of March. |