Tate & Lyle to acquire tapioca business in Thailand

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Agreement to purchase 85% shareholding in Chaodee Modified Starch in support of strategy to grow texturant portfolio

 

Chili Sauce

London, UK, 28 October 2020 – Tate & Lyle PLC (“Tate & Lyle”), a leading global provider of food and beverage ingredients and solutions, announces that it has signed an agreement to acquire an 85% shareholding in Chaodee Modified Starch Co., Ltd. (“CMS”), a well-established tapioca modified food starch manufacturer located in Thailand.

This investment extends Tate & Lyle’s presence in speciality tapioca-based texturants and establishes a dedicated production facility in the main tapioca region of eastern Thailand.  The acquisition will enable Tate & Lyle to offer a broader range of tapioca-based solutions to meet customers’ needs for better tasting and clean label foods in categories including dairy, bakery, snacks, noodles and soup, sauces and dressings. 

Tate & Lyle will operate CMS in partnership with the former owner.  Together with its partner, Tate & Lyle intends to invest in the facility over the next three years to increase significantly capacity for higher functionality starches.  The CMS facility will be supplied with substrate by a co-located tapioca starch mill fully owned and operated by Tate & Lyle’s partner.

Nick Hampton, Chief Executive of Tate & Lyle, said: “We are delighted to announce this investment to expand our tapioca offering and grow our texturant portfolio.  CMS brings new tapioca capabilities, raw material sourcing expertise and additional production capacity to Tate & Lyle, and expands our presence in the higher growth Asia Pacific region.”

Closing of the transaction will occur when customary approvals have been received.

End
 

Notes to Editor

1. Thailand is at the centre of tapioca production, with over 90% of tapioca starch output globally. Source: LMC, Commoditia, T&L
2. Tapioca is the most popular and fastest growing texturant source in the Asian diet, and the fastest growing starch in new product formulations. Source: Mintel GNPD 2015-2019 CAGR
3. Tapioca has highly desirable functional properties such as a translucent colour, clean taste, and a soft gel-like texture.

For more information contact

Anna Taylor-Elphick, Corporate PR Manager
[email protected] / +44(0)7766361515

Christopher Marsh, VP, Investor Relations
Tel: Mobile: +44 (0) 7796 192 688

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About Tate & Lyle PLC:  

Supported by our 165-year history of ingredient innovation, we partner with customers to provide consumers with healthier and tastier choices when they eat and drink. We are proud that millions of people around the world consume products containing our ingredients and solutions every day.  

Through our leading expertise in sweetening, mouthfeel and fortification, we develop ingredients and solutions which reduce sugar, calories and fat, add fibre and protein, and provide texture and stability to food and drink in categories including beverages, dairy, bakery, snacks, soups, sauces, and dressings.  

Tate & Lyle recently acquired CP Kelco, a leading provider of pectin, speciality gums and other nature-based ingredients to create a leader in mouthfeel, significantly enhancing our solutions capabilities. Following this combination, we now have more than 5,000 employees working in around 75 locations in 39 countries, serving customers in more than 120 countries. Science, Solutions, Society is our brand promise and how we will achieve our purpose of Transforming Lives through the Science of Food. By living our purpose, we believe we can successfully grow our business and have a positive impact on society. We live our purpose in three ways, by supporting healthy living, building thriving communities and caring for our planet.  

Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. For the year ended 31 March 2024, and on a pro forma basis which assumes for illustrative purposes that the combination with CP Kelco took place on 1 April 2023, revenue for the enlarged Tate & Lyle Group would have been £2.25 billion. For more information, please visit www.tateandlyle.com or follow Tate & Lyle on LinkedIn, X (Twitter), Facebook or YouTube