DSM In Talks to Acquire Cargills Cultures, Enzymes Ops

HEERLEN, The NetherlandsRoyal DSM is in exclusive discussions to acquire Cargills cultures and enzymes business. The acquisition would be the eighth in the Nutrition cluster since 2010 and would be an integral part of DSMs strategy for its Nutrition cluster and contribute to the current and future growth of DSMs portfolio in health, nutrition and materials.

Cargills cultures and enzymes business is a global manufacturer of cultures and enzymes for the dairy and meat industries with manufacturing operations in Wisconsin and France. The business generates net sales of about 45 million per year.

The global market for cultures and enzymes is valued at more than 1 billion, growing steadily at more than 5% annually. A possible combination of the Cargill cultures and enzymes business with the dairy business of DSM Food Specialties would be highly complementary creating a strong global player and enabling DSM to propel sales growth, as well as capture sizable synergies in global manufacturing footprint, customer reach as well as innovation capabilities in biotechnology and SG&A.

Hans-Christian Ambjerg, president DSM Food Specialties, commented: This acquisition would be another great step in achieving our ambitious growth strategy. Combining both businesses would allow us to serve our customers faster with one of the most versatile offerings in Cultures and Enzymes in the global dairy industry. We have great respect for the knowledge and expertise of the people at Cargill."