Tate & Lyle has signed an agreement to acquire Quantum Hi-Tech Biological, a prebiotic dietary fibre business in China, from ChemPartner Pharmatech, for $237m. 

Quantum engages in the research, development, production and sale of fructo-oligosaccharides (FOS) and galacto-oligosaccharides (GOS). In China, which currently represents the majority of Quantum’s sales, the FOS and GOS market is forecast to grow at around 10% per annum. 

This acquisition is hoped to strengthen T&L’s position in the dietary fibre market, particularly in China and Asia. It expands the company’s ability to provide added-fibre solutions for its customers across a range of categories including dairy, beverages, bakery and nutrition (including infant nutrition), and to meet growing consumer interest in gut health. 

Quantum produces its range of FOS and GOS fibres at its production site in Guangdong Province, Southern China, and its management team will join Tate & Lyle at completion. The acquisition is planned to close Q2 2022. 

Nick Hampton, Chief Executive at Tate & Lyle, said: “We are delighted to announce the agreement to acquire Quantum, a leader in prebiotic dietary fibres and a business recognised for its high-quality ingredients and solutions. This acquisition significantly strengthens our fortification capabilities and expands our customer offering in key food and drink categories. FOS and GOS are highly complementary to our existing fibre portfolio and will enable us to offer a broader range of solutions to our customers. The acquisition is also very much in line with our purpose to support healthy living by improving gut health, and driving sugar and calorie reduction and fibre fortification for consumers across the world.” 

Mr Zeng Xianwei, Chair of the board of ChemPartner, said: “We are proud of the Quantum business we have built over the last 20 years, providing high-quality products to support healthier living for people across China and beyond. Tate & Lyle, with its global customer reach, strong focus on R&D, and strong fibre portfolio, is the ideal company to take Quantum on the next stage of its development. I wish them and the management team at Quantum success in the future.”