Tate & Lyle has signed an agreement to acquire Quantum Hi-Tech (Guangdong) Biological, a prebiotic dietary fibre business in China, from ChemPartner Pharmatech for $237 million.
Quantum focuses on digestive microbiota health, engaging in the research, development, production and sale of fructooligosaccharides (FOS) and galactooligosaccharides (GOS) in Guangdong Province, Southern China.
The acquisition will strengthen Tate & Lyle’s position in the dietary fibres market, enhancing its portfolio of speciality fibres, R&D capabilities and proprietary manufacturing processes and technologies. It will help Tate & Lyle expand its added-fibre offerings across a range of applications such as dairy, beverages, bakery and nutrition (including infant nutrition).
In addition, the purchase will expand Tate & Lyle’s presence in China and Asia and provide opportunities to create solutions for the region.
Nick Hampton, chief executive at Tate & Lyle, said: “We are delighted to announce the agreement to acquire Quantum, a leader in prebiotic dietary fibres and a business recognised for its high-quality ingredients and solutions. This acquisition significantly strengthens our fortification capabilities and expands our customer offering in key food and drink categories.”
He continued: “FOS and GOS are highly complementary to our existing fibre portfolio and will enable us to offer a broader range of solutions to our customers. The acquisition is also very much in line with our purpose to support healthy living by improving gut health, and driving sugar and calorie reduction and fibre fortification for consumers across the world.”
Zeng Xianwei, chairman of the board of ChemPartner, added: “We are proud of the Quantum business we have built over the last 20 years, providing high-quality products to support healthier living for people across China and beyond. Tate & Lyle, with its global customer reach, strong focus on R&D, and strong fibre portfolio, is the ideal company to take Quantum to the next stage of its development. I wish them and the management team at Quantum success in the future.”
The transaction is subject to approval by the shareholders of ChemPartner and is expected to close in the second quarter of 2022.
By Sian Yates
Source: foodbev.com
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