DSM Buys Carotenoid Producer

HEERLEN, The NetherlandsRoyal DSM signed an agreement to acquire carotenoid producer Vitatene S.A.U., León, Spain, from P&R Group, Italy, which allows DSM to strengthen the natural carotenoids offerings of its nutrition business. The transaction is subject to regulatory and other customary approvals and notifications and is expected to close by the end of Q2 2011. Financial details of the acquisition were not disclosed.

Founded in 2004, Vitatene is produces and sells of a range of high-value natural carotenoid products derived from fermentation of the fungus Blakeslea trispora. The products are sold under the brand names Betanat and Lyconat. The products are an addition to DSMs current portfolio of functional carotenoids, ranging from beta-carotene to lutein and zeaxanthin.

Leendert Staal, president and CEO of DSM Nutritional Products, said: This acquisition fits perfectly with our strategy DSM in motion: driving focused growth. Consumer demand for natural products continues to grow. Vitatene is an excellent fit with DSMs current product portfolio and technological capabilities, and will allow us to drive the growth in natural carotenoids."

Carlo Pizzocaro, CEO of P&R Group, said: It is great that we have found such a strong new home for Vitatenes business. We believe this is excellent news for our customers and Vitatenes staff. We will work with DSM to make the transfer as smooth as possible to guarantee business continuity for our customers and thank them for their loyalty."

Carotenoids are naturally occurring fat-soluble pigments synthesized by plants, algae and photosynthetic bacteria. They are the sources of the yellow, orange, and red colors in many plants, such as the orange-red colors of oranges, tomatoes and carrots and the yellow colors of many flowers.

The role of some carotenoids (such as beta-carotene) as the main dietary source of vitamin A has been well studied. In addition, potential protective effects of carotenoids against degenerative eye diseases and other deficiency-related disorders have been recognized. In addition, beta-carotene is an effective and safe natural color. The product forms available allow carotenoids to be used in dietary supplements, beverages and a wide variety of other food applications.