SUGAR LAND, Texas (AP) — Refined sugar processor Imperial Sugar Co. is receiving $60.4 million in net proceeds from the sale of its 50 percent stake in Wholesome Sweeteners Inc. to an affiliate of private investment group Arlon Group.
Wholesome Sweeteners' other joint venture partner prior to the sale was Edward Billington and Son. Ltd. of Liverpool, England. The company provides organic and fair trade certified sweeteners in North America.
Imperial, which is based in Sugar Land, Texas, said Monday that the proceeds were used to lower borrowings under its revolving credit line. The company anticipates a fiscal third-quarter gain of about $38 million related to the sale.
In January, Imperial reported that its fiscal fourth-quarter loss widened and said that it would consider more asset sales as higher sugar prices and mounting losses put pressure on its financial resources.
Shares of Imperial Sugar gained 22 cents, or 5.1 percent, to $4.54 in morning trading. Over the past year, the stock has traded in a range of $2.55 to $25.68.