(Alliance News) - Tate & Lyle PLC on Wednesday agreed to acquire an 85% interest in Thai tapioca modified food starch manufacturer Chaodee Modified Starch Co Ltd for an undisclosed sum.
The investment is expected to extend the sweeter and food ingredients maker's presence in tapioca-based texturants, and will establish a production facility in eastern Thailand.
The acquisition will also allow Tate & Lyle to offer a wider range of tapioca-based products to meet consumer needs.
The group will invest in the facility over the next three years in order to increase its capacity for the production of higher functionality starches.
"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," said Chief Executive Nick Hampton.
Shares in Tate & Lyle were down 0.7% at 625.34 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Tate & Lyle (TATE)