Tate & Lyle Regulatory News (TATE)

Tate & Lyle to acquire tapioca business in Thailand 

Agreement to purchase 85% shareholding in Chaodee Modified Starchin support of strategy to grow texturant portfolio

London, UK, 28 October 2020 - Tate & Lyle PLC ("Tate & Lyle"), a leading global provider of food and beverage ingredients and solutions, announces that it has signed an agreement to acquire an 85% shareholding in Chaodee Modified Starch Co., Ltd. ("CMS"), a well-established tapioca modified food starch manufacturer located in Thailand.

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 CMS in partnership with the former owner. Together with its partner, Tate & Lyle intends to invest in the facility over the next three years to increase significantly 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.

End

Notes to Editor

1. Thailand is at the centre of tapioca production, with over 90% of tapioca starch output globally1.

2. Tapioca is the most popular and fastest growing texturant source in the Asian diet, and the fastest growing starch in new product formulations2.

3. Tapioca has highly desirable functional properties such as a translucent colour, clean taste, and a soft gel-like texture. 

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1. Source: LMC, Commoditia, T&L

2. Source: Mintel GNPD 2015-2019 CAGR

For more information contact

Anna Taylor-Elphick, Corporate PR ManagerAnna.taylor-elphick@tateandlyle.com / +44(0)7766361515

Christopher Marsh, VP, Investor RelationsTel: Mobile: +44 (0) 7796 192 688

About Tate & Lyle: Tate & Lyle is a global provider of solutions and ingredients for food, beverage and industrial markets.Tate & Lyle operates through two global divisions, Food & Beverage Solutions and Primary Products, supported by the Innovation and Commercial Development and Global Operations teams. Food & Beverage Solutions is focused on growth by building leading positions globally in the categories of beverages, dairy, and soups, sauces and dressings. Primary Products is focused on delivering steady earnings and generating cash.Food & Beverage Solutions consists of: Texturants, including speciality starches; Sweeteners, including low- and no-calorie sweeteners; and a Health and Wellness portfolio comprising mainly speciality fibres; and Stabilisers and Functional Systems, which are bespoke ingredient blends that ensure foods retain their structure.Primary Products consists of high-volume sweeteners, industrial starches and fermentation products (primarily acidulants). It also sells co-products from the corn milling process as animal nutrition.Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2020, Tate & Lyle sales totalled £2.9 billion. For more information, please visit http://www.tateandlyle.com or follow Tate & Lyle on Twitter or Linkedin.