Tate & Lyle to Acquire Leading Dietary Fiber Business in China
Tate & Lyle, the global provider of food and beverage ingredients and solutions, announced that it has signed an agreement to acquire Quantum Hi-Tech (Guangdong) Biological Co., Ltd, a leading prebiotic dietary fiber business in China from ChemPartner Pharmatech Co., Ltd for a total consideration of USD237m.
Quantum engages in the research, development, production and sale of fructo-oligosaccharides (FOS) and galacto-oligosaccharides (GOS). Together, FOS (from sucrose) and GOS (from milk sugar/lactose) represent around 25% of the global dietary fibers market which is forecast to grow at around 6% per annum. In China, which currently represents the majority of Quantum’s sales, the FOS and GOS market is forecast to grow at around 10% per annum.
The acquisition of Quantum significantly strengthens Tate & Lyle’s position as a leading global player in dietary fibers, bringing a high-quality portfolio of specialty fibers, strong R&D capabilities and proprietary manufacturing processes and technologies. The acquisition expands Tate & Lyle’s ability to provide added-fiber solutions for its customers across a range of categories including dairy, beverages, bakery and nutrition (including infant nutrition), and to meet growing consumer interest in gut health. It also significantly expands Tate & Lyle’s presence in China and Asia, and extends its capabilities to create solutions across food and drink utilizing its leading specialty ingredient portfolio.
The management team of Quantum will join Tate & Lyle at completion. Closing of the transaction is expected to occur in the second quarter of calendar year 2022.
Nick Hampton, Chief Executive at Tate & Lyle, said: “We are delighted to announce the agreement to acquire Quantum, a leader in prebiotic dietary fibers and a business recognized 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. FOS and GOS are highly complementary to our existing fiber 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 fiber fortification for consumers across the world.”
Mr. Zeng Xianwei, Chairman of the Board of ChemPartner, said: “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 on the next stage of its development. I wish them and the management team at Quantum success in the future.”