NETHERLANDS – Global bio-sciences company, Royal DSM has reached an agreement to acquire specialty dairy solutions provider Koninklijke CSK Food Enrichment in a cash consideration of about €150 million (approximately US$166 million).
DSM said that combining its dairy business with CSK’s will enable the company to better address the fast-growing and attractive dairy cultures markets. Dairy is DSM’s single largest segment in food and beverages.
With the acquisition of CSK, DSM said it will further strengthen its product portfolio and application know-how and expertise in food & beverage, particularly in the complementary area of taste, texture and bio-preservation solutions for semi-hard cheeses.
The transaction will bring CSK’s high-tech fermentation facility in Leeuwarden, Netherlands into DSM’s global manufacturing network, providing additional production capacity for a range of products, located in the European region.
Patrick Niels, DSM Food Specialties President, commented: “We are very much looking forward to welcoming Royal CSK to DSM.
“Our companies have a great fit together, with shared passion for dairy, skilled and dedicated people, and complementary solution portfolios. This is also a testament to DSM’s commitment to the dairy industry, which we support throughout our Nutrition businesses.
“Today’s dairy needs are constantly changing, and DSM continues to invest in enabling customers to keep satisfying consumer demand, helping them grow their business, while we grow ours in line with our purpose-led, performance-driven strategy. The acquisition of CSK will greatly strengthen our ability to do so.”
Sanne Melles, CEO of Royal CSK, said: “In DSM, we recognize the opportunity for CSK to make the leap forward that we were looking for.
“Our combined capabilities will accelerate our international growth ambition and enhance our innovative offerings to the dairy industry.”
The transaction will also include CSK’s state-of-the-art dairy application center in the heart of Food Valley, Wageningen, Netherlands. Subject to customary conditions, the deal is expected to close before the end of the year.
CSK has a track record of Dutch heritage semi-hard cheese cultures of more than 100 years since its foundation in 1905. CSK generated in 2018 net sales of €65 million (US$71.89m) with approximately 180 employees.