dsm-firmenich boosts stake in Andre Pectin to 90.5%
This acquisition strengthens DSM-Firmenich’s position in the specialty ingredients market.
CHINA – dsm-firmenich, an innovator in nutrition, flavors, and fragrances, has expanded its investment in Yantai DSM Andre Pectin Company Limited (‘Andre Pectin’), increasing its shareholding to 90.5%.
dsm-firmenich already held 75% of shares in Andre Pectin. Following the latest acquisition of an additional 15.5% of shares, dsm-firmenich increased its shareholding to 90.5%.
According to the company, the remaining 9.5% of the shares in Andre Pectin will continue to be held by Rich Spring Holdings Limited.
Financial details of the transaction have not been disclosed.
Andre Pectin, founded in 2003 and headquartered in Yantai, China, is known for producing high-quality apple and citrus pectin.
This key ingredient is widely used in food and beverage applications, particularly in jams, jellies, and other gelled products, as well as in certain health supplements.
dsm-firmenich acquires Adare Biome in the Netherlands
The news follows the company’s complete acquisition of Adare Biome, a pioneer in the development and manufacturing of postbiotics, in 2023.
The deal was first announced on April 19, 2023, for an enterprise value of €275 million, representing 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 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 worldwide, in terms of both efficacy and safety.
Unlike live bacteria in probiotics, postbiotics consist of inanimate microorganisms and/or their cellular components and metabolites that confer health benefits to the host.
A growing body of scientific evidence suggests that postbiotics offer comparable health benefits and are more stable, allowing for a longer shelf life and a wider range of applications, as well as new ingredient combinations.
Due to their health benefits, postbiotics are a rapidly emerging segment of the gut health market, projected to grow significantly.
dsm anticipates being able to rapidly expand the availability of Adare Biome’s Lactéol for people through its B2C unit, i-Health.
Additionally, further development of the postbiotic B2B ingredient will involve advanced scientific research and exploration of opportunities in dietary supplements, early life nutrition, medical nutrition, and nutritional improvement for undernourished populations.
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.
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