It also unveiled a quest to find buyers for its remaining sugar business, the molasses unit and its Vietnamese division.

The disposals followed months of speculation that efforts by new chief executive Javed Ahmed to shake up the group, long criticised for reaping a poor return on its capital investments, would mean an exit from sugar.

Mr Ahmed last month unveiled a strategy to develop the group in emerging markets and in high margin ingredients.

US buyer

"Sugar refining has enjoyed a long and proud history within Tate & Lyle, but we believe the interests of this business and its employees are now best served by being part of a company for whom sugar refining is core," Mr Ahmed said.

The disposal represents the second sale to the US this year of cherished UK name, after Kraft's acquisition of Cadbury, the chocolate maker.

Indeed, Tate's European peers, such as Sudzucker, Nordsucker, or Associated British Foods, had been seen by many analysts as more likely buyers for the sugar business.

American Sugar Refining, while North America's biggest cane sugar refinery, mainly thanks to buying Tate refineries in Canada and the US over the past decade, has not historically operated in Europe on any significant scale.

'Very welcome'

The deal was applauded by Panmure Gordon analyst Graham Jones as "very welcome" for Tate "and at a good price, without leading to any material change to earnings forecast".

"This is a significant development in Javed Ahmed's strategy of focusing on added-value food ingredients, and obviously gives Tate more material firepower to pursue its strategy," he added, raising his price target on Tate & Lyle shares to 500p from 440p.

The shares closed 1.0% higher at 454.4p in London.

'Sugar is global'

American Sugar, said that the Tate deal made "perfect sense" and was "consistent" with its "strategic vision for expansion in the sugar refining sector".

"Sugar is a global business," Antonio Contreras, the group's co-president, said.

"The European acquisition in many ways mirrors our North American operations and will complement our company."

The group currently runs four refineries in the US, one in Mexico and one in Canada, the country's largest, which was bought from Tate & Lyle in 2007.