NORWAY – Dutch multinational health and nutrition company DSM has agreed to acquire Norwegian company Vestkorn Milling for an enterprise value of €65 million.
The acquisition is expected to help the company accelerate its growth in the plant-based protein market.
Based in Tau, Norway, Vestkorn Milling is a producer of pea- and bean-derived protein, and supplies proteins, starches and dietary fibres for plant-based foods.
According to DSM, Vestkorn Milling’s portfolio complements its own broad offering to companies developing plant-based food and beverages which includes vitamins, algal lipids and minerals to improve nutritional value.
DSM also has a portfolio of texturizing hydrocolloid, flavours, yeast extracts and enzymes to improve protein taste and functionality.
“Increasingly, food and beverage producers around the world are looking to partners who can offer an integrated portfolio of ingredients, expertise and solutions to help them differentiate and get to market fast,” says Patrick Niels, executive vice president of DSM’s F&B division.
“This is especially important in the highly dynamic meat alternatives space, where consumer and societal expectations around authentic taste, texture and nutritional profile, as well as climate impact, are becoming more and more sophisticated.”
The acquisition is a further step in DSM’s strategy to build an alternative protein portfolio, which includes CanolaPRO rapeseed protein isolate to launch next year, across Europe and North America.
To develop the protein-based, non-GMO canola, DSM recently joined forces with French agro-industrial group Avril.
The company has identified the facility of Saipol as the production site for the canola proteins.
Aslak Lie, Vestkorn Milling’s CEO, added: “Through the cooperation with DSM we have taken a huge step towards becoming a global leader of pulse-based ingredients.
Over the past years, we have significantly expanded our business and market. With DSM, we have got a long-term-oriented owner that will fuel further growth and expansion.”
The transaction, which is subject to customary conditions, is expected to close this year.
Earlier, DSM announced plans to realize large scale production capacity for its methane-reducing feed additive for ruminants, Bovaer.
The upscaled production will be conducted at a new plant at its existing manufacturing site in Dalry, Scotland.
DSM said that it currently has enough commercial product volumes of the product for near term market development.
However, to prepare for anticipated further scale up in the next years, a new production facility is required, it added.
Initial work on the plant has already got underway, with it set to be operational in 2025.
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