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Heerlen, NL, United States, 2012/10/26 - Royal DSM, the global Life Sciences and Materials Sciences company, announced that it has reached agreement with Cargill to acquire Cargillís cultures and enzymes business in an all cash transaction for a total enterprise value of Ä85 million - DSM.com. Euronext: DSM KON
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.
A range of dairy products
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 Ä45 million per year with approximately 200 employees.
The market for cultures and enzymes is valued at over Ä1 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 DSMís growth plans for its business, which continues to benefit from consumer demand for more versatile dairy products. The acquisition further strengthens DSMís 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: ďThis 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 worldís greatest current and future challengesĒ.
Hans-Christian Ambjerg, President DSM Food Specialties, commented: ďWe 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.Ē
The acquisition of Cargillís 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 DSMís strategy for its Nutrition cluster and will contribute to the current and future growth of DSMís attractive portfolio in health, nutrition and materials.
DSM Ė Bright Science. Brighter Livingô
Royal DSM (dsm.com) 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. DSMís 22,000 employees deliver annual net sales of around Ä9 billion. The company is listed on NYSE Euronext.
This press release may contain forward-looking statements with respect to DSMís future (financial) performance and position. Such statements are based on current expectations, estimates and projections of DSM and information currently available to the company. DSM cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. DSM has no obligation to update the statements contained in this press release, unless required by law. The English language version of the press release is leading.
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