Tate & Lyle Moves to Acquire Dietary Fiber Supplier

Food and beverage ingredients supplier Tate & Lyle is poised to expand its presence in the Asian market through the acquisition of China-based prebiotic dietary fiber company Quantum Hi-Tech (Guangdong) Biological Co. Ltd. The company will buy the business from its current owner, ChemPartner Pharmatech Co. Ltd., for a consideration of $237 million.

Quantum specializes in the development and manufacturing of fructo-oligosaccharides (FOS) and galacto-oligosaccharides (GOS) products. The market for FOS and GOS is expected to grow by 10% per year in China.

“This acquisition significantly strengthens our fortification capabilities and expands our customer offering in key food and drink categories,” Nick Hampton, chief executive of Tate & Lyle, said in a recent company release. “FOS and GOS are highly complementary to our existing fiber portfolio and will enable us to support healthy living by improving gut health, and driving sugar and calorie reduction and fiber fortification for consumers across the world.”

The deal will allow Tate & Lyle to supply a wider range of solutions to its customers across a spectrum of categories, including dairy, bakery, and nutrition.

ChemPartner shareholders must approve the transaction before it can proceed. The company anticipates the sale will close in the second quarter of 2022. Members of Quantum’s management team will join Tate & Lyle when the deal closes.