Agreement to purchase 85% shareholding in Chaodee Modified Starch in support of strategy to grow texturant portfolio.
Tate & Lyle has signed an agreement to acquire an 85% shareholding in Chaodee Modified Starch (CMS), a tapioca modified food starch manufacturer located in Thailand.
This investment will extend Tate & Lyle’s presence in speciality tapioca-based texturants and establish a dedicated production facility in the main tapioca region of eastern Thailand. The acquisition will also enable Tate & Lyle to offer a broader range of tapioca-based solutions to meet its 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. Together with its partner, Tate & Lyle has planned 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 operated by Tate & Lyle’s partner.
Nick Hamption, chief executive of Tate & Lyle, commented: “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.”