Food and beverage ingredients and solutions firm Tate & Lyle announced Tuesday that it is expanding its portfolio of sweetener solutions through the acquisition of stevia products supplier Sweet Green Fields (SGF).
“Sweet Green Fields is an exceptional business with a leading portfolio of stevia solutions, a strong team of stevia experts, and an impressive, fully-integrated supply chain. We are delighted to take our relationship to the next level by bringing Sweet Green Fields into the Tate & Lyle family,” said Nick Hampton, chief executive of Tate & Lyle, in a company release.
The executive said the transaction is part of the company’s strategy to expand its sweetener solutions portfolio.
Tate & Lyle formed a partnership with SGF and became its exclusive global distributor in 2017. The following year, the ingredients company took on a 15% equity holding in SGF. Under the terms of the transaction announced this week, Tate & Lyle will acquire the remaining shares in the company.
Integrating SGF into its ranks will provide Tate & Lyle with a fully integrated supply chain and commercial organization and bolster its research and development assets. The London-based firm expects the newly acquired business to generate $50 million in revenue for the year ending Dec. 31, 2020.
The market for stevia-containing products has been growing in recent years. Launches of products made with stevia grew about 15% from 2015 to 2019. Tate & Lyle said its revenues from stevia increased by 23% in the year that ended March 31, 2020.
“I am proud of the leading stevia business that the Sweet Green Fields team has built,” Dean Francis, chief executive of SGF, said in a statement. “Tate & Lyle, with its global customer reach, innovation focus, and strong sweetener portfolio, is the ideal company to take Sweet Green Fields forward, supporting food and beverage customers across the globe and enabling healthier consumer diets.”