DSM to acquire Cargill’s cultures, enzymes business
HEERLEN, THE NETHERLANDS — Royal DSM, a global life sciences and materials sciences company, has agreed to acquire Minneapolis-based Cargill’s cultures and enzymes business in an all cash transaction valued at €85 million ($110 million). The companies first announced they were discussing a potential deal on Sept. 20.
Cargill’s cultures and enzymes business has manufacturing facilities in Wisconsin and La Ferte-Sous-Jouarre, France. It processes cultures and enzymes for the dairy and meat categories and employs approximately 200. The business generates about €45 million ($58 million) per year in sales.
“This 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 world’s greatest current and future challenges,” said Stephan Tanda, a member of the DSM managing board and responsible for DSM’s Nutrition cluster.
The acquisition of Cargill’s cultures and enzymes business would be the eighth acquisition in the Nutrition cluster since DSM unveiled its “DSM in motion: driving focused growth” corporate strategy in September 2010.
Cargill said the sale of the business is in line with its strategy “to re-focus its texturizing business and concentrate on product lines that are adjacent to the company’s core activities and where it can be a leading or relevant player in the marketplace.”
The transaction is expected to close in the next few months, the companies said.