DSM to acquire Cargill's cultures and enzymes business
October 26 2012 - 2:38AM
Marketwired
Royal DSM, the global Life Sciences and Materials Sciences company,
announced today that it has reached agreement with Cargill to
acquire Cargill's cultures and enzymes business in an all cash
transaction for a total enterprise value of EUR85 million. Subject
to customary conditions, the transaction is expected to close in
the next couple of months. DSM and Cargill announced on 20
September 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 (USA) and
France. It has a strong 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 EUR45 million per year with
approximately 200 employees.
The market for cultures and enzymes is valued at over EUR1
billion, growing steadily at more than 5% per annum. Applications
are primarily found in dairy products which continue to have a
healthy and tasty appeal to consumers worldwide. The growing
diversity of dairy products requires versatile culture offerings
enhancing taste, texture and mouthfeel characteristics as well as
health benefits (lower fat, less sugar, etc.) and convenience.
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 as well as innovation capabilities in biotechnology and
SG&A.
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, which continues to benefit from consumer
demand for more versatile dairy products. The acquisition further
strengthens DSM's global position in dairy ingredients with
enzymes, PUFAs, vitamins, cultures, probiotics, bio actives,
preservation systems and tests.
Stephan Tanda, Member of the DSM Managing Board and responsible
for the Nutrition cluster, said: "This is a very important growth
enhancing acquisition for our Food Specialties business and fully
fits our strategy as we continue to create value for all
stakeholders by providing innovative, sustainable solutions to the
world's greatest current and future challenges".
Hans-Christian Ambjerg, President DSM Food Specialties,
commented: "We are very excited about this opportunity to build
critical mass and to serve our customers faster with more
innovative solutions. We look forward to welcoming the Cargill
employees with their great knowledge and expertise."
The acquisition of Cargill's cultures and enzymes business is
the eighth acquisition in the Nutrition cluster since DSM announced
its corporate strategy DSM in motion: driving focused growth in
September 2010. These acquisitions form an integral part of DSM's
strategy for its Nutrition cluster and will contribute to the
current and future growth of DSM's attractive portfolio in health,
nutrition and materials.
DSM - Bright Science. Brighter Living.™
Royal DSM is a global science-based company active in health,
nutrition and materials. By connecting its unique competences in
Life Sciences and Materials Sciences DSM is driving economic
prosperity, environmental progress and social advances to create
sustainable value for all stakeholders. DSM delivers innovative
solutions that nourish, protect and improve performance in global
markets such as food and dietary supplements, personal care, feed,
pharmaceuticals, medical devices, automotive, paints, electrical
and electronics, life protection, alternative energy and bio-based
materials. DSM's 22,000 employees deliver annual net sales of
around EUR9 billion. The company is listed on NYSE Euronext. More
information can be found at www.dsm.com.
Press Release-pdf:
http://hugin.info/130663/R/1652563/533568.pdf
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Source: DSM N.V. via Thomson Reuters ONE
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For more information: DSM Corporate Communications Herman Betten
tel. +31 (0) 45 5782017 e-mail Email Contact DSM Investor Relations
Dave Huizing tel. +31 (0) 45 5782864 e-mail Email Contact