NETHERLANDS – Dsm-Firmenich, innovators in nutrition, health, and beauty, has completed the acquisition of Adare Biome, a pioneer in the development and manufacturing of postbiotics.
The deal was first announced on April 19, 2023, for an enterprise value of €275 million and represents an estimated 2023 EV/EBITDA multiple of 18x.
Founded in 1907, when French chemist Dr. Pierre Boucard launched Lactéol (a branded supplement for relieving gut upsets), Adare Biome’s has grown to become a major player in the postbiotics market.
Lactéol is now available over the counter in 35 countries and is one of the most scientifically well-documented microorganism-based therapeutics in the world in terms of efficacy and safety.
Unlike the live bacteria in probiotics, postbiotics consist of inanimate microorganisms and/or their cellular components and metabolites that confer a health benefit to the host.
A growing body of scientific evidence shows that postbiotics deliver comparable health benefits and are more stable so have a longer shelf-life and can be used in a wider range of applications and in new ingredient combinations.
Due to their health benefits, postbiotics is a rapidly emerging segment of the gut health market that is projected to grow strongly.
DSM anticipates being able to rapidly extend the availability of Adare Biome’s Lactéol® for people through its B2C unit, i-Health.
Additionally further development of the postbiotic B2B ingredient will include further science development and developing opportunities in dietary supplements, early life nutrition, medical nutrition, and nutritional improvement for the under-nourished.
Adare Biome would also help establish DSM as a frontrunner in the growing microbiome management market for pets and expand its animal health range, where the stability of postbiotics means they can be incorporated into DSM’s premix feed solutions.