Tate & Lyle to buy 85% stake in Thai food starch manufacturer

Tate & Lyle has agreed to acquire an 85% stake in Chaodee Modified Starch (CMS), a Thailand-based manufacturer of tapioca-modified food starch.

The financial details of the deal have not been made public.

This investment is part of Tate & Lyle’s strategy to bolster its presence in speciality tapioca-based texturants.

It will provide the company with a dedicated production facility in the prominent tapioca region of eastern Thailand.

The deal will also allow Tate & Lyle to offer a wide range of tapioca-based solutions in categories, including dairy, bakery, snacks, noodles and soup, sauces and dressings.

Under the agreement, Tate & Lyle will operate CMS in partnership with its previous owner.

It also plans to invest in CMS’ facility over the next three years to increase the Thai firm’s capacity for higher functionality starches.

Furthermore, a co-located tapioca starch mill owned and operated by Tate & Lyle’s partner will supply substrate to the CMS facility.

Tate & Lyle chief executive Nick Hampton 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.”

In June, Tate & Lyle selected Solevo as the distributor of its ingredients in West African countries, including Ivory Coast, Senegal and Cameroon.

The company also announced a $75m sustainability investment at its Lafayette South corn wet milling facility in Indiana, in June.