CHINA – British food ingredients supplier Tate & Lyle is expanding its presence in China through an acquisition of a local prebiotic dietary fibre business Quantum Hi-Tech.  

Based in Guangdong, Quantum Hi-Tech focuses on digestive microbiota health, engaging in the research and development of fructooligosaccharides (FOS) and galactooligosaccharides (GOS).  

The company is currently a division of ChemPartner Pharmatech a leading research organization providing high-quality and cost-effective services for pharmaceutical and biotechnology.  

The deal which is valued at US$237m is expected to strengthen Tate & Lyle’s position in the dietary fibres market. 

It will also enhance the company’s portfolio of speciality fibres, R&D capabilities and proprietary manufacturing processes and technologies.  

“FOS and GOS are highly complementary to our existing fibre portfolio and will enable us to offer a broader range of solutions to our customers,” said Nick Hampton, chief executive at Tate & Lyle. 

Quantum Hi-Tech will also help Tate & Lyle expand its added-fibre offerings across a range of applications such as dairy, beverages, bakery and nutrition (including infant nutrition).  

In addition, the purchase will expand Tate & Lyle’s presence in China and Asia and provide opportunities to create solutions for the region.  

“We are delighted to announce the agreement to acquire Quantum, a leader in prebiotic dietary fibres and a business recognised for its high-quality ingredients and solutions,” Hampton said.  

This acquisition significantly strengthens our fortification capabilities and expands our customer offering in key food and drink categories.” 

According to Hampton, the deal was also very much in line with Tate & Lyle’s purpose to support healthy living by improving gut health, driving sugar and calorie reduction, and fibre fortification for consumers across the world. 

The transaction is subject to approval by the shareholders of ChemPartner and is expected to close in the second quarter of 2022. 

Earlier, Tate and Lyle announced that Isabelle Esser, PhD, who has more than 30 years of experience working for global consumer food and ingredients companies, will join the company as non-executive director.  

Dr. Esser spent more than 25 years working for Unilever PLC, eventually becoming executive vice president, R&D foods transformation, global foods and refreshment.   

She left Unilever in 2019 and became chief human resources officer at Barry Callebaut AG and now serves as chief research, innovation and food quality safety officer at Danone SA.   

Following her appointment, Dr. Esser will also become a member of the remuneration and nomination committees of London-based firm.  

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE