BILLINGS, Mont. The Rocky Mountain Sugar Growers
Cooperative, a regional sugarbeet farmers group, has
completed the purchase of Western Sugar Co. from British sugar
giant Tate & Lyle, according to cooperative chairman Rick
Dorn.
However, as of Wednesday evening, there had been no
official confirmation from London-based Tate & Lyle,
according to the office of co-op attorney, Randon Wilson. An
announcement is expected today.
The legal and financial documents are being finalized, but
the sale was effective Tuesday, Dorn said.
The picture-taking ceremony, if there is one, will come
later, said Dorn, who lives in Billings and raises
sugarbeets near Hardin.
The Western Sugar Co. has refineries in Billings, Mont.,
Lovell, Wyo., Fort Morgan and Greeley, Colo., and Bayard and
Scottsbluff, Neb.
The sale comes just a year after sugarbeet growers in the
four states formed a co-op and completed a financial
feasibility study to buy the company.
Wilson, a Salt Lake City attorney who has handled the
purchase for the cooperative, said there are some practical
difficulties of getting all the paperwork completed. He said a
letter will be sent to the growers explaining how the purchase
has come together and will include the closing balance sheet
and interest rates for loan financing.
The sale price on Western was $48 million.
Last year, Tate & Lyle offered Western Sugar Co. to its
1,100 growers for $78 million, or half of its estimated
liquidation value.
In early February, sugarbeet farmers in four states
subscribed 150,000 acres to the growers cooperative to buy
Western. However, this spring, about 130,000 acres were
planted.
Growers in Montana and Wyoming were strong supporters in
subscribing acres, but those in Colorado and Nebraska lagged
and thats when the co-op asked for a re-negotiated price
based on production value.
Dorn said then that there is a mechanism for growers who
did not commit acres this year to buy into the plan. |