Dutch ingredients group DSM has signed a deal to buy US food additive producer Fortitech in a deal worth EUR495m (US$630.8m).
The acquisition, the second for DSM in the last month, is an all-cash transaction and is expected to close this year. Fortitech is a privately-held company based in New York and a leader in customised, value-added food ingredient blends for food and beverage, infant nutrition and dietary supplements industries.
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The purchase of Fortitech is expected to generate savings equal to around 10% of net sales by 2015. Another $70m in one-time synergies are predicted as DSM avoids capital expenditure, it said.
The purchase of Fortitech follows a deal at the end of last month to purchase cultures and enzymes business of US agricultural commodities group Cargill.
