Tate & Lyle acquires leading dietary fibre business in China

Tate & Lyle has acquired Quantum Hi-Tech Biological, a leading probiotic dietary fibre businessin China, from ChemPartner Pharmatech for £180 million ($237 million).

The acquisition of Quantum strengthens Tate & Lyle’s position as a leading global player in dietary fibres and expands the business’ ability to provide added-fibre solutions for its customers across a range of categories including dairy, beverages, bakery and nutrition.

Quantum engages in the research, development, production and sale of fructo-oligosaccharides (FOS) and galacto-oligosaccharides (GOS) at its production site in Guangdong Province, Southern China.

Together, FOS (from sucrose) and GOS (from milk sugar/lactose) represent around 25% of the global dietary fibres market which is forecast to grow at around 6% per annum.

The transaction is subject to approval by the shareholders of ChemPartner, a public company listed in China, and is expected to be completed in the second quarter of 2022.

READ MORE: Tate & Lyle food & beverage solution growth higher than pre-pandemic levels

The deal also expands Tate & Lyle’s presence and customer offering in China and Asia.

“This acquisition significantly strengthens our fortification capabilities and expands our customer offering in key food and drink categories,” Tate & Lyle chief executive Nick Hampton said.

“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.”

Chairman of the board of ChemPartner Zeng Xianwei added: “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.”

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