NETHERLANDS – Royal DSM, a global science-based company in nutrition and health, has reached an agreement to acquire Erber Group, a specialty animal nutrition and health company based in Austrian for an enterprise value of €980 million (US$1.1 billion).
The acquisition involves Erber Group’s specialty animal nutrition and health businesses; Biomin and Romer Labs – which specialize primarily in mycotoxin risk management, gut health performance management, and food and feed safety diagnostic solutions.
Upon closing of the acquisition, DSM said that the Eber will expand its specialty solutions, with Romer Labs complementing DSM’s human nutrition and health offering to food industry customers.
Romer Labs is one of the leading diagnostic technology providers with innovative testing solutions for the analysis of mycotoxins in feed and food, food allergens and pathogens as well as veterinary drug residues. The business operates accredited full-service labs in Austria, UK, USA and Singapore.
With the acquisition, the Dutch ingredients supplier noted that Erber Group offers the company the opportunity to enter the mycotoxin risk management market as the world leader and extends the company’s position as one of the top suppliers in the rapidly growing animal gut performance management market.
DSM will leverage Biomin’s patented and proprietary mycotoxin protection technology and production capabilities of phytogenic and probiotic feed alternatives to antibiotics, which will also complement and strengthens DSM’s position in the rapidly growing global eubiotics market for improving animal gut health.
With state-of-the-art research and manufacturing facilities and approximately 1,200 employees around the world, DSM says that the acquisition of Erber is a unique strategic opportunity that provides revenue-enhancing synergies from the combined offering, global customer base, and complementary geographic strengths.
“These are great businesses with strong and sustained track records of profitable growth and attractive margins,” said Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of DSM.
“Biomin and Romer Labs will help strengthen and accelerate the growth of our specialty animal nutrition and health offering, including our big data and diagnostic capabilities, and it is exciting to be entrusted to take these family-founded businesses forward.”
Erber Group’s specialty animal nutrition and health businesses, Biomin and Romer Labs, specialize primarily in mycotoxin risk management, gut health performance management, and food and feed safety diagnostic solutions, expanding.
According to a statement by DSM, Erber two’s smaller units; Sanphar and EFB, representing 7% of Erber Group’s total sales, are not included in the transaction. The acquired businesses have combined sales of €330 million (US$372m) for the twelve months to the end of March 2020.
The Dutch biosciences company said that the acquisition will be debt financed, with committed bridge financing in place and the transaction is expected to be earnings enhancing in the first year upon completion. The acquisition is expected to close in Q4 2020.
Commenting on the acquisition, Dr. Erich Erber, Founder and President of Erber Group, said: “In DSM, I recognize the mutual values of sustainable stewardship that are so important to us. DSM is the perfect home for our businesses, as Biomin and Romer Labs will be able to use their new scale to intensify our joint contribution to a more sustainable world’s food supply.”
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