DSM to acquire Cargill's cultures and enzymes business

DSM to acquire Cargill's cultures and enzymes business 
HEERLEN, THE NETHERLANDS -- (Marketwire) -- 10/26/12 --  Royal DSM,
the global Life Sciences and Materials Sciences company, announced
today that it has reached agreement with Cargill to acquire Cargill's
cultures
and enzymes business in an all cash transaction for a total
enterprise value of EUR85 million. Subject to customary conditions,
the transaction is expected to
close in the next couple of months.
DSM and Cargill announced on 20 September
2012 they were in exclusive
discussions about this transaction. 
The cultures and enzymes business of Cargill is a leading global
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 EUR45 million per year with
approximately
200 employees. 
The market for cultures and enzymes is valued at over EUR1 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 mouthfeel characteristics as well as health benefits
(lower fat, less sugar, etc.) and convenience. 
By combining the cultures and enzymes business of Cargill with the
dairy business of DSM Food Specialties a strong global player will be
created, enabling DSM to propel sales growth as well as capture
sizable synergies in global manufacturing and customer reach as well
as innovation capabilities in
biotechnology and SG&A. 
The combination of the two businesses will allow DSM to achieve its
ambition to become a tier one supplier of cultures and enzymes to the
global dairy market
and will greatly accelerate DSM's growth plans
for its business, which continues
to benefit from consumer demand for
more versatile dairy products. The acquisition further strengthens
DSM's global position in dairy ingredients with
enzymes, PUFAs,
vitamins, cultures, probiotics, bio actives, preservation systems and
tests. 
Stephan Tanda, Member of the DSM Managing Board and responsible for
the Nutrition cluster, said: "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". 
Hans-Christian Ambjerg, President DSM Food Specialties, commented:
"We are very
excited about this opportunity to build critical mass
and to serve our customers
faster with more innovative solutions. We
look forward to welcoming the Cargill
employees with their great
knowledge and expertise." 
The acquisition of Cargill's cultures and enzymes business is 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. 
DSM - Bright Science. Brighter Living.(TM) 
Royal DSM is a global science-based company active in health,
nutrition and materials. By connecting its unique competences in Life
Sciences and Materials
Sciences DSM is driving economic prosperity,
environmental progress and social
advances to create sustainable
value for all stakeholders. DSM delivers innovative solutions that
nourish, protect and improve performance in global
markets such as
food and dietary supplements, personal care, feed, pharmaceuticals,
medical devices, automotive, paints, electrical and electronics, life
protection, alternative energy and bio-based materials. DSM's
22,000
employees deliver annual net sales of around EUR9 billion. The
company is listed on NYSE Euronext. More information can be found at
www.dsm.com. 
Press Release-pdf: 
http://hugin.info/130663/R/1652563/533568.pdf 
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants
that: 
(i) the releases contained herein are protected by copyright and    
other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and     
originality of the information contained therein. 
Source: DSM N.V.  via Thomson Reuters ONE 
[HUG#1652563] 
For more information: 
DSM Corporate Communications
Herman Betten
tel. +31 (0) 45 5782017
e-mail media.relations@dsm.com 
DSM Investor Relations
Dave Huizing
tel. +31 (0) 45 5782864
e-mail investor.relations@dsm.com
 
 
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