NETHERLANDS – Royal DSM, a global science-based company in nutrition and health has secured a deal to acquire human milk oligosaccharides supplier Glycom for €765 million (US$826m).

Founded in 2005, Glycom is a Danish company that pioneered the development and commercialization of human milk oligosaccharides (HMOs) for Early Life Nutrition applications.

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.

Glycom operates a state-of-the-art manufacturing plant in Esbjerg, Denmark with more than 150 employees.

According to a statement by DSM, Glycom 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.

The company achieved €74 million (US$80m) of sales in 2019, pre-dominantly generated by a mutually beneficial long-term contract between Glycom and Nestlé.

With the acquisition of Glycom, DSM adds HMOs to its portfolio, a novel high-growth ingredient for next generation early life nutrition solutions which include nutritional lipids, vitamins and nutrient premixes.

DSM believes that this acquisition will be highly synergetic for both companies as they will benefit from a wider customer base and leverage a strong R&D platform.

Geraldine Matchett and Dimitri de Vreeze Co-CEOs of Royal DSM, commented: “We are looking forward to welcoming Glycom to DSM. Our companies have a great fit together, with a shared passion for purpose-led and science-based solutions in Nutrition & Health.

“This acquisition is an attractive and logical next step for DSM enabling us to provide our customers with innovative Early Life Nutrition solutions in our Human Nutrition business.”

Odd Hansen, CEO of Glycom, added: “We are excited to join DSM. This not only enables us to accelerate the growth of Glycom by adding our HMO products to DSM’s broad global customer base and integrate it in its full solutions offering for Infant Nutrition customers, it also creates leverage with DSM’s strong R&D platform and clinical competencies to support development of Glycom’s next generation HMO’s. DSM is a real great home for Glycom to reach its full potential.”

The transaction is expected to close in Q2 2020.