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Royal DSM to acquire Cargill’s enzymes and cultures business

By Caroline Scott-Thomas , 26-Oct-2012

Applications are mainly in dairy
Applications are mainly in dairy

Royal DSM has said it will acquire Cargill’s enzymes and cultures business in an all-cash deal worth €85m.

The two companies said in late September that they were in exclusive discussions about a potential transaction, when Cargill said that the sale would be in line with its strategy to refocus and concentrate on product lines adjacent to its core activities, where it can be a leading or relevant player in the marketplace.

The buy-out is the eighth acquisition in the nutrition arena for DSM since September 2010 when the firm announced its corporate strategy ‘DSM in motion: driving focused growth’ – outlining a shift toward maximizing sustainable growth and profits.

"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,” said Stephan Tanda, member of the DSM managing board, responsible for the Nutrition cluster.

The deal includes Cargill’s cultures and enzymes business in France and in Wisconsin in the United States for the dairy and meat industries, with net sales of about €45m a year. Applications are mainly in dairy products, with products including cultures to enhance taste, texture and mouthfeel, while reducing fat and sugar.

DSM said that the market for cultures and enzymes is worth over €1bn and is growing more than 5% a year. It claims the deal will cement its place as a leading supplier of cultures and enzymes to the global dairy market.

The company expects the deal to be completed within the next couple of months. 

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