DSM says deal strengthens its position in animal health and nutrition
The deal was first announced on June 12. Biomin specializes primarily in mycotoxin risk management and gut health performance management, and the Romer Labs business focuses on food and feed safety diagnostic solutions. Both expand DSM’s range of higher value-add specialty solutions. Sanphar and EFB, representing 7% of Erber Group’s total sales, were not included in the transaction.
“The acquisition of Erber Group’s Biomin further 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,” the companies said in a joint press release. “It is therefore very much aligned with DSM’s focus to make animal farming more sustainable from both an ecological and economical perspective. Romer Labs also complements DSM’s human nutrition and health offering to customers in the food and beverages market segments.”
According to the companies, the acquired businesses have combined sales of EUR330 million and an adjusted EBITDA margin of more than 20% for the 12 months to the end of March 2020, with a high single-digit organic sales growth rate over the past 5 years. The acquisition will be debt financed, with committed bridge financing in place, DSM said when the acquisition was announced.