Tate & Lyle to acquire Thai tapioca business

By Jim Cornall contact

- Last updated on GMT

The facility in the main tapioca region of Thailand will enable Tate & Lyle to offer a broader range of solutions including for dairy products. Pic: Tate & Lyle
The facility in the main tapioca region of Thailand will enable Tate & Lyle to offer a broader range of solutions including for dairy products. Pic: Tate & Lyle

Related tags: Dairy, Ingredients, Thailand, Tapioca

Tate & Lyle PLC, a global provider of food and beverage ingredients and solutions, has signed an agreement to acquire an 85% shareholding in Chaodee Modified Starch Co., Ltd. (CMS), a 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 company said the acquisition will enable it 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.  Tate & Lyle said it intends to invest in the facility over the next three years to increase 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.

 

 

Related topics: Ingredients, Emerging Markets

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