LONDON, UK: Tate & Lyle has signed an settlement to acquire Quantum Hi-Tech (Guangdong) Biological Co., a number one prebiotic dietary fibre enterprise in China from ChemPartner Pharmatech for a complete consideration of US$237 million, a bourse submitting noted.
Nick Hampton, Chief Executive at Tate & Lyle, said: “We are delighted to announce the settlement to purchase Quantum, a chief in prebiotic dietary fibres and a enterprise recognised for its high-quality ingredients and solutions. This acquisition considerably strengthens our fortification capabilities and expands our buyer offering in key meals and drink categories.
FOS and GOS are extremely complementary to our existing fibre portfolio and can allow us to supply a broader vary of options to our customers. The acquisition is additionally very a lot in line with our purpose to support wholesome living by improving intestine health, and driving sugar and calorie discount and fibre fortification for consumers throughout the world.”
Quantum engages within the research, development, manufacturing and sale of fructo-oligosaccharides (FOS) and galacto-oligosaccharides (GOS).
Together, FOS (from sucrose) and GOS (from milk sugar/lactose) represent round 25%2 of the worldwide dietary fibres market which is forecast to develop at round 6% per annum3. In China, which currently represents the bulk of Quantum’s sales, the FOS and GOS market is forecast to develop at round 10% per annum3.
The acquisition of Quantum considerably strengthens Tate & Lyle’s place as a number one global participant in dietary fibres, bringing a high-quality portfolio of speciality fibres, strong R&D capabilities and proprietary manufacturing processes and technologies.
The acquisition expands Tate & Lyle’s ability to present added-fibre options for its customers throughout a vary of classes together with dairy, beverages, bakery and nutrition (including toddler nutrition), and to meet rising consumer curiosity in intestine health. It additionally considerably expands Tate & Lyle’s presence in China and Asia, and extends its capabilities to create options throughout meals and drink utilising its main speciality ingredient portfolio.
The transaction is topic to approval by the shareholders of ChemPartner, a public firm listed in China, of which Quantum is a wholly-owned subsidiary. At completion, consideration4 will be paid in money for 100% of the fairness pursuits in Quantum. For the eleven months ended 30 November 2021, Quantum generated income of US$46 million and EBITDA of US$14 million5. The acquisition is anticipated to be accretive to income growth and EBITDA margin for Tate & Lyle within the primary year of ownership.
Quantum produces its vary of FOS and GOS fibres at its manufacturing site in Guangdong Province, Southern China. The administration team of Quantum will join Tate & Lyle at completion. Closing of the transaction is anticipated to happen within the second quarter of calendar year 2022.
Mr. Zeng Xianwei, Chairman of the Board of ChemPartner, said: “We are proud of the Quantum enterprise we have constructed over the final 20 years, offering high-quality merchandise to support more wholesome living for people throughout China and beyond. Tate & Lyle, with its global buyer reach, strong focus on R&D, and strong fibre portfolio, is the ideal firm to take Quantum on the subsequent stage of its development. I want them and the administration team at Quantum success within the future.”