Louis Dreyfus Company (LDC) has entered into a definitive agreement to sell the business and assets of port refiner Imperial Sugar Company to U.S. Sugar, a privately held agri-business based in Clewiston, Florida, US.

LDC purchased Imperial Sugar in 2012 for US$78 million. The company’s refinery capacities will supplement U.S. Sugar farms’ 200,000 acres (80,940 hectares) of farmed sugar cane and its large milling and refining installation in Florida.

The transaction is expected to close in 2021, subject to regulatory approvals and customary closing conditions.

“I am confident that the move will create production, logistics and supply chain synergies and efficiencies that will benefit both companies and our customers,” says Mike Gorrell, president and CEO of Imperial Sugar.

Imperial Sugar primarily sources raw cane sugar from Central and South America, and from the Caribbean. The transaction also includes Imperial Sugar’s consumer-facing sugar brands, sold mainly across the southern US.

Year-on-year financial results
LDC has reported stable year-on-year net sales, at US$33.6 billion, amid weathering the COVID-19 pandemic.

Among notable highlights over the COVID-19 period, the merchant and processor of agricultural commodities invested in disruptive technologies through its corporate venture capital program “LDC Innovations,” in the creation of Covantis, focused on digitizing international trade.

The transaction is expected to close in 2021, subject to regulatory approvals and customary closing conditions.The group also took delivery of a new eco-efficient fleet for its juice business, formed an aquatic feed research partnership, signed an agreement with Chinese partners to build a food industrial park, launched new branded products in China and partnered with e-commerce companies to distribute these.

The group’s income before tax was listed at US$620 million, up 110.2 percent versus 2019. Net income, group share, was up 66.1 percent year-on-year, at US$382 million. Meanwhile, return on equity, group share, was at 8 percent (from 4.6 percent in full-year 2019).

“In a year marked by an unprecedented global crisis, LDC’s reach, expertise and adaptability proved more important than ever, enabling us to keep essential supply chains active and deliver significantly improved results, while pursuing our strategic plans,” says Michael Gelchie, LDC’s CEO.

“Our efforts in this uncertain and challenging environment were fruitful. We protected our people, our operations proceeded with minimal interruptions and we delivered solid financial results.”

Segment performance
Segment Operating Results rose 63.1 percent year-on-year to US$1.6 billion, as LDC successfully managed risks to capture profitable origination and sales margins while meeting customer demand.

This performance drove EBITDA from continuing operations of US$1.3 billion, up 58.4 percent versus 2019.

The company’s operating results were up 76.3 percent and 43.7 percent year-on-year in the Value Chain Segment and Merchandizing Segment, respectively.

Both business segments contributed to LDC’s strong operating performance in an uncertain market environment, met with currency fluctuations and continued trade tensions. Demand remained resilient for all the main food products commercialized by the group.