Royal DSM, the global Life Sciences and Materials Sciences company, announced today that it has successfully completed the acquisition of Cargill's cultures and enzymes business. The acquisition, announced on 26 October 2012, will enable DSM to become a global tier one dairy ingredients supplier.
The cultures and enzymes business of Cargill is a global leading 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 €45 million per year with approximately 200 employees.
The market for cultures and enzymes is valued at over €1 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 mouth feel characteristics as well as health benefits (lower fat, less sugar, etc.) and convenience.
By combining Cargill's cultures and enzymes business with the dairy business of DSM Food Specialties, a strong global player will be created, enabling DSM to accelerate sales and capture meaningful 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 strong 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.
DSM - Bright Science. Brighter Living.(TM)
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 €9 billion. The company is listed on NYSE Euronext. More information can be found at www.dsm.com.
For more information:
DSM Corporate CommunicationsHerman Betten
tel. +31 (0) 45 5782017
DSM Investor RelationsDave Huizing
tel. +31 (0) 45 5782864
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Source: DSM N.V. via Thomson Reuters ONE