Sector News

DSM acquires majority stake in Andre Pectin for 150m euros

February 4, 2019
Food & Drink

DSM has agreed to spend €150m to increase its shareholding in Chinese pectin products maker Yantai Andre Pectin to 75%.

Having initially bought a 29% stake in the ingredients maker in 2013, DSM said it has now settled a shareholder dispute to purchase an additional 46%.

The remaining 25% of shares in Andre Pectin will continue to be held by the Shandong Andre Group. DSM said it will closely work with Andre Group to improve the operational performance of Andre Pectin, ensuring reliable supply through its global sales network of pectin, while securing compliance with DSM’s own safety, health and sustainability standards.

Located in Yantai, Shandong Province, Andre Pectin is said to be “Asia’s largest producer of apple and citrus pectin”, hydrocolloids providing texture solutions for food and beverages. With 410 employees, DSM drew attention to the company’s “strong organic sales and profit growth track record”.

The deal expands DSM’s hydrocolloid portfolio, complementing its stakes in DSM Zhongken Biotechnology and DSM Rainbow (Inner Mongolia) Biotechnology.

Hydrocolloids are thickeners and stabilisers that dissolve, disperse or swell in water to provide a range of functionalities, including gelling, texture, mouthfeel, viscosity and suspension.

According to DSM, demand for hydrocolloids is driven by three underlying consumer trends: the quest for convenient foods and beverages, consumers’ increasing demand for dairy and plant-based protein drinks, and a move towards clean labelling.

It is expected the transaction will close in the first or second quarter of 2019.

The announcement comes a week after DSM revealed plans to create a joint venture with Chinese firm Nenter & Co to make vitamin E.

Source: FoodBev

comments closed

Related News

October 23, 2021

Coca-Cola announces 100% plant-based bottle prototype for commercial testing

Food & Drink

Coca-Cola is unveiling a fully plant-based PET (bPET) bottle prototype, excluding the cap and label. The beverage giant has produced a limited run of 900 bottles, confirming the prototypes are recyclable within existing recycling infrastructures, alongside PET from oil-based sources.

October 23, 2021

McDonald’s and Starbucks increase investment in reusable packaging and fiber-based recyclability

Food & Drink

McDonald’s and Starbucks are committing an additional US$10 million to the NextGen Consortium, an initiative aiming to improve environmental sustainability standards in the foodservice industry. Founded by investment firm Closed Loop Partners, the Consortium is investigating methods of advancing the design, commercialization and recovery of packaging materials.

October 23, 2021

Hortifrut’s US$280M acquisition of Atlantic Blue bolsters European position

Food & Drink

Hortifrut is purchasing Atlantic Blue for US$280 million. Atlantic Blue is a key player in the growing and marketing of berries in Europe and Northern Africa, based in Huelva, Spain. The transaction will allow Hortifrut to expand its growing area by about 20% and consolidate its position as the largest fresh blueberry platform in Europe and the UK.

Send this to a friend