Tate & Lyle to acquire Thai tapioca business
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.
