Country Focus Reporting on the latest developments from the Chinese food and drink sector
China Tate & Lyle to acquire leading dietary fibre business in China Tate & Lyle, a leading global provider of food and beverage ingredients and solutions, has signed an agreement to acquire Quantum Hi-Tech Biological Co Ltd, a leading prebiotic dietary fibre business in China, from ChemPartner Pharmatech Co Ltd for a total consideration of $237 million.
A broader range of solutions 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. “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.” The acquisition expands Tate & Lyle’s ability to provide added-fibre 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 the company’s capabilities to create solutions across food and drink utilising its leading speciality ingredient portfolio. The transaction is subject to approval by the shareholders of ChemPartner, a public company listed in China, of which Quantum is a wholly owned subsidiary. At completion, consideration will be paid in cash for 100% of the equity interests in Quantum. For the 11 months ended 30th November 2021, Quantum generated revenue of $46 million and EBITDA of $14 million. The acquisition is expected to be accretive to revenue growth and EBITDA margin for Tate & Lyle in the first year of ownership. 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 develop-
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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
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he acquisition of Quantum Hi-Tech Biological Co Ltd significantly strengthens Tate & Lyle’s position as a leading global player in dietary fibres, bringing a high-quality portfolio of speciality fibres, strong R&D capabilities and proprietary manufacturing processes and technologies. Quantum Hi-Tech Biological Co Ltd, headquartered in Guangzhou, engages in the research, development, production and sale of fructo-oligosaccharides (FOS) and galactooligosaccharides (GOS). 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. In China, which currently represents most of Quantum’s sales, the FOS and GOS market is forecast to grow at around 10% per annum.
ment. I wish them and the management team at Quantum success in the future.” Quantum produces its range of FOS and GOS fibres at its production site in Guangdong Province, Southern China. 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.
About Tate & Lyle Tate & Lyle is a leading global provider of food and beverage ingredients and solutions with a 160-year history. Through the company’s expertise in sweetening, mouthfeel and fibre fortification, Tate & Lyle develops solutions which reduce sugar, calories and fat, add fibre, and provide texture and stability in categories including beverages, dairy, bakery, soups, sauces and dressings. The business has more than 3,000 employees working in around 60 locations across 30 countries. In the year to 31st March 2021, Tate & Lyle revenue from continuing operations totalled £1.2 billion. n Inside Food & Drink
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