DSM to acquire Glycom to accelerate growth in Early Life Nutrition
Royal DSM has reached an agreement to acquire Glycom for an enterprise value of €765 million.
DSM is a solutions supplier to the early life nutrition industry with its portfolio of, for example, nutritional lipids, vitamins and nutrient premixes. With the acquisition of Glycom, DSM adds HMOs to its portfolio, a novel high-growth ingredient for next generation early life nutrition solutions.
This acquisition by DSM will be highly synergetic for both companies. DSM can accelerate the growth of Glycom by offering HMO products to DSM’s broad global customer base and integrate it in its full solutions offering for early life nutrition customers. DSM can accelerate the HMO product development of Glycom by leveraging its strong R&D platform and clinical competencies to support Glycom’s development of next generation HMOs. DSM can furthermore introduce HMOs in other segments outside the early life nutrition market, for instance for toddlers, children and adults, as well as in the medical nutrition and the pet food segments, creating additional growth potential.
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 and 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 the second quarter of 2020.