US agricultural commodities group Cargill has signed an agreement for the sale of its cultures and enzymes business to Dutch ingredients giant DSM.
The all-cash EUR85m (US$109.6m) transaction, revealed this morning (26 October) follows earlier announcements by both companies confirming “exclusive discussions” between the two.
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The transaction, which is subject to regulatory approval, is expected to be completed in the next few months.
The division, which forms part of Cargill’s global texturising business, has production facilities in Wisconsin and La Ferte-Sous-Jouarre (France). It produces cultures and enzymes for the dairy and meat industries and employs around 200 people.
Cargill’s move to seek a buyer for the business is in line with its strategy to focus its texturising business on product lines that are closer to its core activities and where it can be a “leading or relevant player in the marketplace”.
DSM said the acquisition will allow it to achieve its ambition of becoming a tier one supplier of cultures and enzymes to the global dairy market and will “greatly accelerate” its growth plans.
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By GlobalData“This is a very important growth enhancing acquisition for our food specialties business and fully fits our strategy as we continue to create value for all stakeholders by providing innovative, sustainable solutions to the world’s greatest current and future challenges,” said Stephan Tanda, member of the DSM managing board and responsible for the nutrition cluster.
