Royal DSM to acquire stake in Chinese pectin producer
HEERLEN, THE NETHERLANDS — Royal DSM, a global life sciences and materials sciences company, has agreed to acquire a 19% interest in Yantai Andre Pectin Co. Ltd., a China-based producer of texturing ingredients. The companies also have agreed that DSM has option rights to increase its stake in Andre Pectin to a majority stake at a later stage.
Based in the Shandong Province of China, Andre Pectin was established in 2003 and is active in the manufacturing and sale of apple and citrus pectin, a key food ingredient providing texture, as well as pectin related health supplements.
Andre Pectin said its pectins provide “a shiny and attractive finish on all sorts of pastry and desserts” or “a smooth and tasty fruit filling” to bakery products. In addition, the company said its glazes seal the surface and act at the same time as a flavor enhancer, color and freshness preserver.
The company has annual net sales of approximately €30 million ($39 million).
The agreements are subject to customary approvals and certain closing conditions, including the approval of the selling party’s shareholders. Closing is expected in the third quarter of 2013.