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 Quantum Hi-Tech (Guangdong) Biological Co., Ltd (Quantum), a leading prebiotic dietary fibre business in China from ChemPartner Pharmatech Co., Ltd (ChemPartner) for a total consideration of US$237 million.
Key highlights:
· Fully aligned to strategy to become growth-focused food and beverage solutions business
· Strengthens position as a leading global player in fast-growing global dietary fibres market
· Adds new, speciality and complementary products to portfolio
· Brings strong R&D expertise with proprietary manufacturing processes and technologies
· Strengthens fortification platform and enhances integrated solutions capabilities
· Significantly extends presence and customer offering in China and Asia
· Expected to be accretive to revenue growth and EBITDA margin in first year of ownership
· Completion expected in the second quarter of 2022 calendar year.
Quantum engages in the research, development, production and sale of fructo-oligosaccharides (FOS) and galacto-oligosaccharides (GOS). Together, FOS (from sucrose) and GOS ( from milk sugar/lactose) represent around 25%2 of the global dietary fibres market which is forecast to grow at around 6% per annum3. In China, which currently represents the majority of Quantum's sales, the FOS and GOS market is forecast to grow at around 10% per annum3.
https://www.investegate.co.uk/tate---38 ... 00066742G/