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DSM acquires Glycom for $826 million to boost early life nutrition

DSM business acquisition
Royal DSM today announced it is acquiring Glycom A/S, the world’s leading supplier of human milk oligosaccharides (HMO), for approximately US$826 million.

The deal further cements DSM as a leading global solutions supplier to the Early Life Nutrition industry with its unique portfolio of nutritional lipids, vitamins and nutrient premixes. The addition of Glycom’s HMO products creates additional growth potential in other markets including toddlers, children and adults, as well as in the medical nutrition and the pet food segments. It also creates leverage with DSM’s strong R&D platform and clinical competencies to support development of Glycom’s next generation HMOs.

HMOs are a collection of carbohydrate structures found in human breast milk. Essential for both immune and cognitive development, HMOs act as prebiotics in infants, which help to develop the desired microbial flora by serving as feed for the good bacteria in the intestine.

According to a press release, Glycom’s 2019 sales reached €74 million in sales, predominantly generated from Nestlé. The company operates a manufacturing plant in Esbjerg, Denmark, and is the only fully-integrated HMO provider in the world with its own product development, preclinical and clinical development, regulatory and large-scale production with an exciting innovation roadmap for next-generation HMOs.

“We are looking forward to welcoming Glycom to DSM,” said Geraldine Matchett and Dimitri de Vreeze Co-CEOs of Royal DSM. “Our companies have a great fit together, with a shared passion for purpose-led and science-based solutions in Nutrition & 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.”

This latest acquisition is part of DSM’s global food and beverage play. In 2019, the company the international agro-industrial group Avril announced a collaboration produce a unique plant-based protein based on non-GMO canola that has functional properties, a high nutritional value, and a balanced taste profile, making it ideal for a range of applications including meat and dairy alternatives, beverages, baked products, bars and ready-to-mix. The partners’ are developing a state-of-the-art industrial production facility fully dedicated to canola proteins at Avril’s Saipol facility in Dieppe, France. Commercial availability from first production could be as early as end 2021.

TAGS: Operations
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