Q & A on Everglades Deal

Questions and answers about the Everglades deal announced Tuesday:

Q: How much land is involved?

A: About 187,000 acres in Palm Beach, Hendry, Glades and Gilchrist counties. It includes land and assets of U.S. Sugar Corp. including sugar cane land, a sugar mill, a refinery, a citrus plant, a citrus nursery, rock mines, a railroad and railcars and all equipment.

Q: What is the sale price?

A: $1.75 billion.

Q: How was the purchase price determined?

A: The price was negotiated with the South Florida Water Management District (SFWMD).

Q: How did the deal come to the table?

A: A proposal came from Gov. Charlie Crist suggesting that SFWMD buy all of U.S. Sugar's assets. A contract will be signed within 75 days of the announcement and a closing is expected in November.

Q: What is the environmental significance?

A: The land will be used to restore historic water flows between Lake Okeechobee and the Everglades that had been diminished by farming. It will also reduce pollutants, particularly phosphorous, flowing into waterways.

Q: Why did the company agree to this now?

A: U.S. Sugar says the state proposal was the first serious, significant offer to buy everything - "lock, stock and barrel" - and offered a "fair price" to shareholders. Increased regulatory concerns, several consecutive years of hurricane and drought impacts, and concerns about the business's long-term sustainability, played a role. The company was also concerned about future increases in foreign sugar in U.S. markets through new trade agreements.

Q: How many employees will be affected?

A: The company has 1,700 employees. A determination of whether any individual assets such as the sugar mill or the citrus plant continue to run will be determined at a later date by the South Florida Water Management District. Those decisions will determine the number of employees affected.

- NYT REGIONAL MEDIA GROUP