DSM exits bakery altogether

The sale of DSM’s interest in Rymco is the final step in divesting its yeast and bread improver businesses.

12/07/05 DSM today announced that it has agreed to sell its 50% share interest in South African yeast products manufacturer Rymco to its joint venture partner Daniel Mills & Sons. The total proceeds of the share transfer for DSM amount to EUR 39 million. Closing is expected to take place in September, subject to certain standard regulatory approvals.

The sale of DSM’s interest in Rymco is the final step in divesting its yeast and bread improver businesses. Last month, DSM sold the main bakery activities of its business group DSM Bakery Ingredients to Gilde Investment Management. In 2004, the Baking Enzymes business unit was transferred to the DSM Food Specialties business group. The share interest in Rymco formed the last remaining element of the Bakery Ingredients business group.

Feike Sijbesma, member of DSM’s Managing Board, commented: “The strategic decision to shift our focus more to health and nutritional value enhancing food ingredients and the changing business climate for bakery ingredients products, made us decide to step out of this business. After the successful divestment of DSM Bakery Ingredients, it was a logical step to also sell our one remaining activity left in this area. I am pleased that Daniel Mills & Sons is the acquiring party. Since they already hold 50% of Rymco, the business will continue under an existing owner.”