Royal DSM has reached an agreement to acquire Glycom A/S, a supplier of human milk oligosaccharides (HMO), for an enterprise value of €765 million (approximately $832 million). HMOs are a collection of carbohydrate structures found in human breast milk. They act as prebiotics in infants, helping to develop the desired microbial flora by serving as feed for the good bacteria in the intestine.

This acquisition will be highly synergetic for both companies. DSM can accelerate the growth of Glycom by offering HMO products to DSM’s broad global customer base and integrate it into its full solutions offering for early life nutrition customers. DSM can accelerate the HMO product development of Glycom by leveraging its R&D platform and clinical competencies to support Glycom’s development of next-generation HMOs. Furthermore, DSM can introduce HMOs in other segments outside the early life nutrition market, for instance, for toddlers, children, and adults, as well as in the medical nutrition and the pet food segments, creating additional growth potential.

Founded in 2005, Glycom is a Danish company with more than 150 employees. It pioneered the development and commercialization of HMOs for early life nutrition applications. The company operates a manufacturing plant in Esbjerg, Denmark, and is the only fully integrated HMO provider in the world with its own product development, preclinical and clinical development, regulatory, and large-scale production. The company achieved €74 million (approximately $80 million) of sales in 2019. These sales were predominantly generated with Nestlé, and Nestlé will continue to be an important customer in the future.

The transaction is expected to close in the second quarter of this year.

Press release

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