DSM acquires Cargill’s cultures and enzymes business

Dutch food and chemicals company DSM has completed the acquisition of Cargill’s cultures and enzymes business for €85m in cash.

The move comes after DSM entered into an agreement on 26 October to acquire the cultures and enzymes business, as part of its plan to become a leading global dairy ingredients supplier.

Cargill’s cultures and enzymes business manufactures cultures and enzymes for the dairy and meat industries, and has manufacturing facilities in Wisconsin, US, and La Ferté-Sous-Jouarre, France.

The business has a portfolio of new products built on three key technologies: culture texture toolbox; fast acidification for cheese yield improvements; and culture flavour systems.

It has annual net sales of around €45m, with a total workforce of 200.

The proposed sale is part of Cargill’s strategy to focus on product lines which are close to its core operations.

The global market for cultures and enzymes is valued at over €1bn, with an annual growth rate of more than 5%, according to DSM.

Its applications are primarily in the dairy industry, where there is a growing demand for products that provide improved taste and texture and offer health benefits such as lower fat and sugar.

DSM noted that the merger of Cargill’s cultures and enzymes business with the dairy business of DSM Food Specialties will boost its sales, and complement its manufacturing capabilities, customer reach, and innovation capabilities in biotechnology and SG&A.

It will also strengthen DSM’s global position in dairy ingredients, with enzymes, PUFAs, vitamins, cultures, probiotics, bio actives, preservation systems and tests.

DSM has been expanding rapidly through acquisitions since it announced its strategy to concentrate on growth in September 2010; many of the deals have focused on the nutrition category.

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Image: DSM expects the acquisition of Cargill’s cultures and enzymes business to boost its manufacturing footprint, customer reach and innovation capabilities. Photo courtesy of DSM.