DSM in Negotiations to Acquire Cargill’s Cultures and Enzymes Business

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.

20 Sep 2012 --- Royal DSM is in exclusive discussions with Cargill which may, or may not result in the acquisition of Cargill’s cultures and enzymes business by DSM.

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 global market for cultures and enzymes is valued at over €1 billion, growing steadily at more than 5% per annum. A possible combination of the Cargill cultures and enzymes business with the dairy business of DSM Food Specialties would be highly complementary creating a strong global player and enabling DSM to propel sales growth as well as capture sizable synergies in global manufacturing footprint, customer reach as well as innovation capabilities in biotechnology and SG&A.

A successful acquisition of the Cultures and Enzymes business of Cargill would be the eighth acquisition in the Nutrition cluster since DSM announced its corporate strategy DSM in motion: driving focused growth in September 2010. These acquisitions form an integral part of DSM’s strategy for its Nutrition cluster and will contribute to the current and future growth of DSM’s attractive portfolio in health, nutrition and materials.

Hans-Christian Ambjerg, President DSM Food Specialties, commented: “This acquisition would be another great step in achieving our ambitious growth strategy. Combining both businesses would allow us to serve our customers faster with one of the most versatile offerings in Cultures and Enzymes in the global dairy industry. We have great respect for the knowledge and expertise of the people at Cargill.”

Cargill’s cultures and enzymes operation forms part of its global texturizing business and has production facilities in Wisconsin (USA) and La Ferté-Sous-Jouarre (France). It manufactures cultures and enzymes for the dairy and meat industries and employs around 200 people.

This proposed sale is in line with Cargill’s strategy to re-focus its texturizing business and concentrate on product lines that are adjacent to the company’s core activities and where it can be a leading or relevant player in the marketplace.

Both companies are now engaging in the information and consultation process with employee representative bodies in the relevant countries. Further information will be announced in due course.

This feature is provided by Food Ingredients First’s sister website, Nutrition Insight.

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