Addleshaw Goddard has advised Tate & Lyle on the re-alignment of Eaststarch, its European joint venture with US company, Archer Daniels Midland.
The deal (part of a wider restructuring announced this week) will see Tate & Lyle take full ownership of a plant in Slovakia focussed mostly on speciality ingredients and divest itself of its interest in three corn wet mills in Europe (Bulgaria, Turkey and Hungary), thereby substantially reducing its commodities business in Europe.
The transaction, which is subject to regulatory clearances and is due to complete in the summer, will also see Tate & Lyle receive €240 million in cash on completion.
The Addleshaw Goddard team was led by head of the firm's Retail & Consumer sector and corporate partner, Andrew Rosling, supported by Louise Pritchard and Steve Conyers with competition partner Bruce Kilpatrick advising on competition issues and Jenny Te and Rob Garwood on commercial agreements. They also worked with best friends Loyens Loeff and Noerr in various jurisdictions.
Andrew Rosling, commenting on the deal, said: "This is an important deal for Tate & Lyle and we are delighted to have supported them in re-shaping their operations in Europe’.
Robert Gibber, Executive Vice President and General Counsel, Tate & Lyle said: "The re-alignment of the Eaststarch joint venture represents an important step in the transition of Tate & Lyle to a global Speciality Food Ingredients business.
Some of the deal highlights from the wider Retail and Consumer sector include:
- Advising Sainsbury's on their high profile, strategic joint venture with Dansk Supermarket to create the new Netto grocery chain in the UK. The deal is a significant collaboration for Sainsbury's and we are proud to have supported it in seizing an opportunity to further its long-term goals with this strategic move in the highly competitive and fast-changing grocery sector - led by Andrew Rosling (corporate), Jonathan Davey (commercial) and Bruce Kilpatrick (competition).
- Advising the shareholders of REN Skincare in relation to Unilever's agreement to acquire the iconic natural cosmetics brand. The acquisition is expected to complete in May following usual regulatory clearances – led by corporate partner Paul Medlicott and supported by Tina Wong, Katie Simpson, Daniel Linton, Javeta McDonald, Cat Concannon, Justine Delroy, Clare Walker, Phil McDonnell and Victoria Davies.
- Advising Associated British Foods (ABF) on its strategic acquisition of Dorset Cereals - this deal saw ABF's Jordans & Ryvita business acquire the contemporary breakfast brand, Dorset Cereals, from Wellness Foods, to complement its existing portfolio of muesli and granola brands. The transaction exchanged in May 2014 and completed in late October following clearance from the Competition and Markets Authority – led by corporate partner, Chris Taylor, with support from Andrew Grant, Stuart Smith, Richard Stanbrook, Paul Concannon, Bruce Lightbody and Richard Wilkinson.
- Advising long-standing client PZ Cussons Plc on its buy-out of Glanbia's 50% stake in Nutricima for £21m – this was a joint venture between PZ Cussons and Glanbia (which manufactures and supplies diary based consumer products to the Nigerian market). The deal will see PZ Cussons take full ownership and control and further develop existing brands including Nunu, Olympic and Yo. PZ Cussons has also entered into a new long-term agreement with Glanbia Ingredients Ireland for the supply of milk-based products to Nutricima. The AG team was led by Corporate Partner Paul Medlicott and included Tina Wong, Joanne Cooper, Michael Rainey, William Ngan and Justine Delroy.