Royal DSM, the global Life Sciences and Materials Sciences company, has reached agreement to acquire Cargill’s cultures and enzymes business for €85 million.
Royal DSM, the global Life Sciences and Materials Sciences company, has reached agreement to acquire Cargill’s cultures and enzymes business for €85 million. Subject to customary conditions, the transaction is expected to close in the next couple of months. DSM and Cargill announced on Sept. 20, 2012 they were in exclusive discussions about this transaction.
The cultures and enzymes business of Cargill is a leading global manufacturer of cultures and enzymes for the dairy and meat industries with manufacturing operations in Wisconsin and France. It has a pipeline of new products built on three pillars of technology: culture texture toolbox, fast acidification for cheese yield improvements, and culture flavor systems. The business generates net sales of about €45 million per year with approximately 200 employees.
By combining the cultures and enzymes business of Cargill with the dairy business of DSM Food Specialties, a strong global player will be created, enabling DSM to propel sales growth as well as capture sizable synergies in global manufacturing and customer reach. The combination of the two businesses will allow DSM to achieve its ambition to become a tier one supplier of cultures and enzymes to the global dairy market and will greatly accelerate DSM’s growth plans for its business. The acquisition further strengthens DSM’s global position in dairy ingredients with enzymes, PUFAs, vitamins, cultures, probiotics, bio actives, preservation systems, and tests.