Royal DSM has reached an agreement to acquire Erber Group, which includes Biomin and Romer Labs, for $1.1 billion (€980 million). The transaction, which expands DSM’s range of higher value-add specialty solutions, is expected to close in Q4 2020.
Biomin and Romer Labs have combined sales of “€330 million and an Adjusted EBITDA margin above 20% for the twelve months to the end of March 2020, with a high single-digit organic sales growth rate over the past 5 years,” according to DSM’s press release.
“With state-of-the-art research and manufacturing facilities and approximately 1,200 employees around the world, the acquisition of Erber Group is a unique 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 leader and extends the company’s position as one of the top suppliers in the rapidly growing animal gut performance management market.”
The acquisition of Erber Group strengthens DSM’s position as a leading supplier of animal health and nutrition solutions for farm productivity and sustainability, the company says.
Sanphar and EFB, representing 7% of Erber Group’s total sales, were not included in the transaction.
Additional details can be found in DSM’s Presentation to Investors.
