New York: U. S Sugar has initiated a process to acquire business and assets of its local rival Imperial Sugar from commodities trader Louis Dreyfus Company.
Louis Dreyfus had bought the business of Imperial Sugar in 2012 for $78 million. Imperial Sugar operates a refinery at Port Wentworth in Savannah, Georgia, and a sugar transfer and liquification facility in Ludlow, Kentucky.
U S Sugar farms 200,000 acres (80,940 hectares) sugarcane and runs a milling and refining installation in Clewiston, Florida.
The company will benefit from the combined business with Imperial Sugar and hopes to increase its share in the US market.
The sale of the business will allow us to concentrate on our global sugar trading business, said Louis Dreyfus.
Though the financial details were not disclosed the U S Sugar said that the transaction will be done through debt financing with the help of Wells Fargo Bank and PPGIM Agricultural Finance.