Royal DSM N.V. the global Life Sciences and Materials Sciences company, announced that it has reached agreement with Cargill to acquire Cargill´s cultures and in an all cash transaction for a total enterprise value of 85 million EUR. Subject to customary conditions, the transaction is expected to close in the next couple of months. DSM and Cargill announced on 20 September 2012 they were in exclusive discussions about this transaction.
The cultures and enzymes business of Cargill is a leading global manufacturer of cultures and enzymes for the dairy and meat industries with manufacturing operations in Wisconsin (USA) and France. It has a strong pipeline of new products built on three pillars of technology: culture texture toolbox, fast acidification for cheese yield improvements and culture flavour systems. The business generates net sales of about €45 million per year with approximately 200 employees.
The market for cultures and enzymes is valued at over one billion EUR, growing steadily at more than five percent per annum. Applications are primarily found in dairy products which continue to have a healthy and tasty appeal to consumers worldwide. The growing diversity of dairy products requires versatile culture offerings enhancing taste, texture and mouthfeel characteristics as well as health benefits (lower fat, less sugar, …) and convenience.