Tate & Lyle PLC (LSE:TATE) said it is to buy China's Quantum Hi-Tech (Guangdong) Biological Co., a prebiotic dietary fibre business, for US$237mln in cash.
The maker of Splenda and Golden Syrup said the aquisition from ChemPartner Pharmatech Co., Ltd will expand its offering in Asia and boost revenue growth and EBITDA margin in the first year.
Quantum generated revenue of US$46mln and EBITDA of US$14mln in the 11 months ended November 30, 2021.
The deal, which is conditional on the Chinese company's shareholder approval, will expand Tate & Lyle's capability to provide added fibre in a range of categories, including dairy, beverages, bakery and nutrition and infant nutrition.
"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," said Tate & Lyle's chief executive Nick Hampton.
Quantum manufactures its range of fibres in Guangdong Province, Southern China. At completion, Quantum's management team will join Tate & Lyle.