DSM completes acquisition of interest in Chinese pectin company
HEERLEN, THE NETHERLANDS — Royal DSM has completed an acquisition of a 19% equity interest in Yantai Andre Pectin Co. Ltd. in Yantai, China. Royal DSM, based in Heerlen, now has a 29% stake in Andre Pectin since it previously acquired a 10% stake from Hony Capital, a China-focused private equity firm. The parties also have agreed that DSM has option rights to increase its stake to a majority stake at a later stage.
Andre Pectin manufactures and sells apple and citrus pectin, a food hydrocolloid that provides texture, as well as pectin-related food products. The company has annual net sales of about €30 million ($40.5 million).
DSM said its investment in Andre Pectin, combined with previously acquired gellan gum assets in China, creates a growth platform for China-based hydrocolloids, which is in line with DSM’s strategy for its Nutrition cluster.