Chemical company and feed additives producer DSM will acquire Austria-based Erber Group, which is the holding company for Biomin and Romer Labs. The total transaction has an enterprise value of € 980 million.
In a press release, DSM announced the news to purchase the Erber Group’s specialty animal nutrition and health businesses, Biomin and Romer Labs. These specialise primarily in mycotoxin risk management, gut health performance management, and food and feed safety diagnostic solutions, which expand DSM’s range of higher value-add specialty solutions.
The company wrote: “The acquisition of Erber Group strengthens DSM’s expertise and reputation as a leading provider of animal health and nutrition solutions for farm productivity and sustainability, with an emphasis on emissions reduction, feed consumption efficiency, and better use of water and land.”
Only the business divisions Sanphar and EFB, representing 7% of Erber Group’s total sales, are not included in the transaction.
With modern research and manufacturing facilities and about 1,200 employees around the world, the acquisition of Erber Group is described as a strategic opportunity that provides revenue-enhancing synergies from the combined offering, global customer base, and complementary geographic strengths. Austrian-based Erber Group offers DSM the opportunity to enter the mycotoxin risk management market as the world le ader and extends the company’s position as one of the top suppliers in the rapidly growing animal gut performance management market.
The press release described Biomin’s patented and proprietary technology provides the most scientifically advanced mycotoxin protection available. Biomin is also a major producer of phytogenic and probiotic feed alternatives to antibiotics, which complements and strengthens DSM’s position in the rapidly growing global eubiotics market for improving animal gut health.
Romer Labs is described as being “at the forefront of diagnostic technology with innovative testing solutions for the analysis of mycotoxins in feed and food, food allergens and pathogens as well as veterinary drug residues, with accredited full-service labs in Austria, UK, USA and Singapore.” DSM’s extensive global network of food and beverage customers as well as feed customers stand to benefit from Romer Labs’ expertise and the combined group’s data-based quality assurance offering.
Geraldine Matchett and Dimitri de Vreeze, co-CEOs of DSM, said: “These are great businesses with strong and sustained track records of profitable growth and attractive margins. 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. It was immediately clear to us that the people at Erber Group share our purpose-led mission and will make a wonderful addition to DSM.”
Dr Erich Erber, founder and president of Erber Group, commented: “In DSM, I recognise the mutual values of sustainable stewardship that are so important to us. The world must reduce farming’s environmental impact at the same time as increasing protein production to feed 10 billion people by 2050. To do that, we have to make sure protein is produced sustainably, using renewable ingredients as much as possible, while protecting the well-being of animals. 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.”
According to the press release, the acquired businesses have combined sales of € 330 million. The transaction, which remains subject to customary conditions, is expected to close in the 4th quarter of 2020.