DSM to acquire CSK
Dairy is DSM’s single largest segment in food and beverages, and the company said its customers are increasingly looking for solution providers with a broad portfolio of offerings and expertise to support them in delivering different and sustainable end products to consumers.
DSM said with the acquisition of CSK, it will further strengthen its product portfolio and application know-how and expertise in food and beverage, in particular in the complementary area of taste, texture and bio-preservation solutions for semi-hard cheeses such as Dutch heritage cheeses Gouda and Edam.
The transaction will include CSK’s dairy application center in the heart of Food Valley, Wageningen, the Netherlands. In addition, it will bring its fermentation facility in Leeuwarden, the Netherlands, into DSM’s global manufacturing network, providing additional production capacity for a range of products, located in the strategically important European region.
Patrick Niels, DSM Food Specialties president, said, "We are very much looking forward to welcoming Royal CSK to DSM. Our companies have a great fit together, with shared passion for dairy, skilled and dedicated people, and complementary solution portfolios. This is also a testament to DSM's commitment to the dairy industry, which we support throughout our nutrition businesses.
“Today's dairy needs are constantly changing, and DSM continues to invest in enabling customers to keep satisfying consumer demand, helping them grow their business, while we grow ours in line with our purpose-led, performance-driven strategy. The acquisition of CSK will greatly strengthen our ability to do so."
Sanne Melles, CEO of Royal CSK, said, “In DSM, we recognize the opportunity for CSK to make the leap forward that we were looking for. Our combined capabilities will accelerate our international growth ambition and enhance our innovative offerings to the dairy industry.”
CSK has a track record of Dutch heritage semi-hard cheese cultures of more than 100 years since its foundation in 1905, while in 2019 DSM celebrates 150 years of fermentation and biotechnology innovation at its site in Delft.
In 2018, CSK generated net sales of €65m ($72m), and had approximately 180 employees, around 150 of whom are based in the Netherlands.
Subject to customary conditions, the transaction is expected to close before the end of the year.