Tate & Lyle has agreed to acquire a 85% stake in Thailand-based tapioca ingredient manufacturer Chaodee Modified Starch for an undisclosed sum.
Chaodee Modified Starch produces a range of tapioca modified food starch ingredients for a range of food and beverage applications.
According to figures provided by Tate & Lyle, over 90% of tapioca starch is produced in Thailand, so 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 acquisition will enable Tate & Lyle 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 Chaodee Modified Starch in partnership with the company’s former owner. Tate & Lyle intends to invest in the company’s production facility over the next three years to significantly increase the production capacity for higher functionality starches.
The Chaodee Modified Starch 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.”
© FoodBev Media Ltd 2020