DSM Completes Acquisition of Cargill’s Cultures and Enzymes Business
The market for cultures and enzymes is valued at over €1 billion, growing steadily at more than 5% per annum. Applications are primarily found in dairy products which continue to have a healthy and tasty appeal to consumers worldwide.
7 Dec 2012 --- Royal DSM has successfully completed the acquisition of Cargill’s cultures and enzymes business. As of today, both businesses are formally combined to create a global tier one dairy ingredients supplier.
The cultures and enzymes business of Cargill is a global leading 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 flavor 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 €1 billion, growing steadily at more than 5% 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 mouth feel characteristics as well as health benefits (lower fat, less sugar, etc.) and convenience.
Combining both businesses is in line with DSM’s ambitious growth plans for its dairy business. The increasing diversity of dairy products now available requires versatile culture offerings enhancing taste and texture as well as health benefits and convenience. With one of the broadest dairy ingredients portfolios including enzymes, PUFAs, vitamins, cultures, probiotics, bio actives, preservation systems and tests, the newly established business is able to service requirements from customers all around the world.
The new business provides a broad choice of fermentation-produced enzymes as well as animal-derived enzymes. The extended range of cultures offers taste, performance and differentiation for traditional and ethnic dairy products around the world. The surface and ripening culture portfolio, for instance, enables specific taste and textures to be created for the different kinds of specialty cheeses that vary greatly from region to region.
DSM has over one hundred years’ experience in the application of fundamental research to fermentation-based solutions in food and nutrition. Around 500 scientists work at the DSM Biotechnology Center on microbial strain analysis for fermentation as well as and down-stream processing and applications. In combination with the excellent application and development knowledge centers in US and France, the new business has a well-positioned pipeline of innovations. In particular, relating to the segments of yoghurt and fermented milk products that, on all continents, see strong growth driven by a broad consumer appeal for healthy and versatile milk-derived products.
The newly combined business will have a global manufacturing footprint with operations spread over three continents. In the USA, with key strengths in manufacturing of bulk starter and direct set cultures as well as lipases and coagulants. In France, where the focus is on surface and ripening cultures as well as lactic acid cultures and fermented enzymes. And in Australia where direct set cultures are produced. DSM can thereby service local needs for dairy producers in any part of the world.
Hans-Christian Ambjerg, President DSM Food Specialties, commented: “We now have critical mass to serve customers worldwide with value creating solutions. With the excellent knowledge of our new colleagues combined with our own strengths in bio-based solutions, we look forward to working even closer with our customers to help them achieve the best in dairy, delivering differentiating products.”
The integration of both businesses will take place in the next couple of months and is expected to be complete by mid-2013.
