Tate & Lyle to acquire Chinese prebiotics firm in £180m deal

By Gwen Ridler contact

- Last updated on GMT

Tate & Lyle has agreed to acquire Quantum Hi-Tech (Guangdong) Biological in a deal worth $237m USD
Tate & Lyle has agreed to acquire Quantum Hi-Tech (Guangdong) Biological in a deal worth $237m USD

Related tags: Ingredients

Food and drink ingredients producer Tate & Lyle has signed an agreement to acquire Chinese prebiotic dietary fibre business Quantum Hi-Tech (Guangdong) Biological in a deal worth $237m USD (£180.4m).

Subject to approval of Quantum parent company ChemPartner, the acquisition would expand 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. 

Nick Hampton, Chief Executive at Tate & Lyle, said the acquisition significantly strengthened its fortification capabilities and expanded its customer offering in key food and drink categories.  

Broader range of solutions 

“Fructo-oligosaccharides (FOS) and galacto-oligosaccharides (GOS) are highly complementary to our existing fibre portfolio and will enable us to offer a broader range of solutions to our customers,” ​he continued. 

“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 deal would also significantly expand Tate & Lyle’s presence in China and Asia and extend its capabilities to create solutions across food and drink utilising its leading speciality ingredient portfolio. 

Global reach 

ChemPartner chairman Zeng Xianwei added: “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.” 

Quantum is involved in the research, development, production and sale of FOS and GOS. Together, FOS (from sucrose) and GOS (from milk sugar/lactose) represent around 25% of the global dietary fibres market which it forecast to grow at around 6% per annum. 

Tate & Lyle also announced that on 1 April 2022 it completed the sale of a controlling stake in a new company and its subsidiaries (now called Primient). These comprised its Primary Products business in North America and Latin America and its interests in the Almidones Mexicanos and DuPont Tate & Lyle Bio-Products Company, LLC joint ventures, to KPS Capital Partners.

KPS now holds a 50.1% interest in Primient and has board and operational control. Tate & Lyle now holds a 49.9% interest in Primient.

Meanwhile, last month, plant baker Finsbury Food Group's subsidiary Lightbody Holdings agreed to acquire a further 35% of Lightbody-Stretz for €7.14m from Phaste,​ bringing its stake to 85% of its shares. 

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