Imperial Sugar Company (NASDAQ:IPSU) announced today that it had completed the sale of its 50% interest in Wholesome Sweeteners, Incorporated to an affiliate of Arlon Group, a private investment group focused on food and agriculture. The net proceeds of $60.4 million cash, which is subject to adjustment upon determination of Wholesome’s closing date working capital, were used to reduce borrowings under Imperial’s revolving line of credit. Outstanding borrowings under the credit agreement were $7.8 million after receipt of the sales proceeds. Imperial expects to report a gain on the sale of approximately $38 million in its third fiscal quarter ending June 30, 2012.
Wholesome Sweeteners is the leading provider of organic and fair trade certified sweeteners in North America. The company, which was formed in 2001, was a 50/50 joint venture between Imperial and Edward Billington and Son, Limited of Liverpool, England prior to the sale.
About Imperial Sugar
Imperial Sugar Company is one of the largest processors and marketers of refined sugar in the United States to food manufacturers, retail grocers and foodservice distributors. With packaging and refining facilities across the U.S., the Company markets products nationally under the Imperial®, Dixie Crystals®, and Holly® brands. For more information about Imperial Sugar, visit www.imperialsugar.com.Statements regarding final net proceeds, expected gain and other statements that are not historical facts contained in this release are forward-looking statements that involve certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.