FDBusiness.com

DSM to Acquire Glycom For €765 Million to Accelerate Growth in Early Life Nutrition

 Breaking News

DSM to Acquire Glycom For €765 Million to Accelerate Growth in Early Life Nutrition

DSM to Acquire Glycom For €765 Million to Accelerate Growth in Early Life Nutrition
February 26
11:45 2020
Spread the love

Royal DSM, a global science-based company specialising in nutrition, health and sustainable Lliving, has agreed to acquire Glycom, the world’s leading supplier of Human Milk Oligosaccharides (HMO), for an enterprise value of €765 million. HMOs are a collection of carbohydrate structures found in human breast milk. They act as prebiotics in infants, which help to develop the desired microbial flora by serving as feed for the good bacteria in the intestine. HMOs are essential for both immune and cognitive development.

Glycom is a Danish company with more than 150 employees, founded in 2005, that pioneered the development and commercialization of HMOs for Early Life Nutrition applications. The company operates a state-of-the-art manufacturing plant in Esbjerg (Denmark) and is the only fully-integrated HMO provider in the world with its own product development, preclinical and clinical development, regulatory and large-scale production with an exciting innovation roadmap for next-generation HMOs.

Glycom achieved €74 million of sales in 2019. These sales were pre-dominantly generated with Nestlé and Swiss food giant will continue to be an important customer in the future. The Nestlé contract is a mutually beneficial long-term contract with firmly committed volumes also covering the mid-term horizon.

DSM is a leading global solutions supplier to the Early Life Nutrition industry with its unique portfolio of, for example, nutritional lipids, vitamins and nutrient premixes. With the acquisition of Glycom, DSM adds HMOs to its portfolio, a novel high-growth ingredient for next generation Early Life Nutrition solutions.

This acquisition by DSM will be highly synergetic for both companies. DSM can accelerate the growth of Glycom by offering HMO products to DSM’s broad global customer base and integrate it in its full solutions offering for Early Life Nutrition customers. DSM can accelerate the HMO product development of Glycom by leveraging its strong R&D platform and clinical competencies to support Glycom’s development of next generation HMOs. DSM can furthermore introduce HMOs in other segments outside the Early Life Nutrition market, for instance for toddlers, children and adults, as well as in the medical nutrition and the pet food segments, creating additional growth potential.

The transaction, whicih is expected to close in Q2 2020, represents an EV/EBITDA multiple of 20.6x based on the 2019 reported EBITDA, and around 15x based on the estimated 2021 EBITDA.


Warning: count(): Parameter must be an array or an object that implements Countable in /home/fdbusiness/public_html/wp-content/themes/legatus-theme/includes/single/post-tags.php on line 5

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements