Tate & Lyle to buy 85% stake in tapioca business
Tate & Lyle has agreed to buy an 85% stake in CMS, a tapioca modified food starch manufacturer located in Thailand, for an undisclosed sum.
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Tate said on Wednesday that the investment extends its 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 ," it said.
The company will operate CMS in partnership with the former owner.
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."
No financial details were disclosed.