LONDON — Tate & Lyle PLC has agreed to acquire an 85% shareholding in Chaodee Modified Starch Co. Ltd., a tapioca modified food starch manufacturer in Thailand. The acquisition will allow London-based Tate & Lyle to offer a broader range of tapioca-based systems in categories such as baked foods, dairy, snacks, noodles, soup, sauces and dressings.
Tate & Lyle over the next three years will invest in the facility to increase capacity for higher functionality starches. Tate & Lyle said data from LMC International, an economic consulting firm in the agriculture and agribusiness sector, show Thailand produces over 90% of tapioca starch output globally.
“We are delighted to announce this investment to expand our tapioca offering and grow our texturant portfolio,” said Nick Hampton, chief executive of Tate & Lyle. “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.”
Tate & Lyle’s portfolio already includes tapioca-based starches. Claria Everlast, which may be labeled as tapioca starch, joined the company’s line of Claria starches this year.