Sector News

DSM acquires animal health, nutrition businesses from Erber Group for more than $1 billion

June 16, 2020
Energy & Chemical Value Chain

DSM has reached an agreement to acquire the Biomin and Romer Labs businesses from Erber Group (Getzersdorf, Austria), an animal nutrition and health company, for an enterprise value of €980 million ($1.1 billion).

Erber Group’s Sanphar and EFB businesses, representing 7% of its total sales, are not included in this transaction and will “be carved out before closing,” DSM says. The deal is subject to customary conditions and expected to close in the fourth quarter of 2020.

The value of the transaction represents an EV/EBITDA multiple of about 14 times 2020 EBITDA, the company says. The acquisition will be debt financed, with committed bridge financing in place. DSM says it continues to benefit from a strong balance sheet and remains committed to maintaining a strong investment-grade credit profile.

The acquired businesses, Biomin and Romer Labs, specialize primarily in mycotoxin risk management, gut health performance management, and food and feed safety diagnostic solutions. They have combined annual sales of €330 million and an adjusted EBITDA margin above 20% for the 12 months ended March 2020, with a high single-digit organic sales growth rate over the past five years, DSM says.

DSM expects the acquisition to provide revenue-enhancing synergies. The earnings per share contribution of the acquisition in 2021 is expected to be €0.15, DSM says. “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,” say Geraldine Matchett and Dimitri de Vreeze, co-CEOs at DSM.

Erich Erber, founder and president of Erber Group, says that under DSM, “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.”

DSM says that Biomin’s technology provides protection against mycotoxins that occur as a result of natural fungus contaminants in animal feed and threaten the health of animals and humans. It is also a producer of phytogenic and probiotic feed alternatives to antibiotics. Romer Labs offers diagnostic technology with 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, the UK, the US, and Singapore, DSM says.

By: Sotirios Frantzanas

Source: Chemical Week

comments closed

Related News

May 26, 2024

Borealis signs first Austrian wind and solar PPA with Burgenland Energie

Energy & Chemical Value Chain

Borealis has partnered with Austria-based wind and solar power producer and green tech solution provider Burgenland Energie on a power purchase agreement (PPA). Under the ten-year agreement, renewable electricity will be provided by a hybrid renewable energy park located in Nickelsdorf, Austria, which is owned by Burgenland Energie’s subsidiaries Nick Alpha and Wind PV Operation.

May 26, 2024

DuPont to split into three companies

Energy & Chemical Value Chain

DuPont de Nemours Inc. announced plans to split into three separate, publicly traded companies. The electronic materials and water business will become independent companies, with the remainder of the company to comprise New DuPont. The splits will be complete within 18 to 24 months, and do not require shareholder approval.

May 26, 2024

Olin hires new leader for chlor-alkali and vinyls business

Energy & Chemical Value Chain

Olin Corp. has hired Deon Carter as vice president and president/chlor-alkali products and vinyls, effective June 17. Carter was previously COO at Continental Industries Group, a position he took April 2023 after serving as president and CEO of Scientific Design Company.

How can we help you?

We're easy to reach