echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Food News > Food Articles > Royal DSM Acquires Glycom to Accelerate Development of Early Life Nutrition Business

    Royal DSM Acquires Glycom to Accelerate Development of Early Life Nutrition Business

    • Last Update: 2022-09-22
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

    Recently, Royal DSM, a global scientific company active in nutrition, health and green life, announced that it has reached a value of up to 765 million euros with Glycom A/S (Glycom), the world's important supplier of breast milk oligosaccharides (HMO).
    acquisition transaction
    .
    Based on the earnings before interest, tax, depreciation and amortization (EBITDA) announced in 2019 and the expected EBITDA value in 2021, the enterprise valuation multiple of this transaction is about 20.
    6 times and 15 times, respectively
    .

    HMOs are a series of sugar structures present in human breast milk that act as prebiotics in the newborn, feeding probiotics in the gut and helping to foster a healthy microbial community
    .

    Founded in Denmark in 2005, Glycom has more than 150 employees and specializes in the development and commercialization of HMO products for early life nutrition
    .
    The state-of-the-art manufacturing facility in Esbjerg (Denmark) enables the company to become a global integrator capable of autonomous product development, pre-clinical and clinical development, low-volume pre-production and large-scale manufacturing, while developing a new generation product innovation roadmap HMO suppliers
    .
    In 2019, Glycom had sales of 74 million euros, the vast majority of which came from Nestlé
    .
    In the future, Nestlé will still be an important customer of Glycom, and the two parties have signed a reciprocal agreement with clear order quantity requirements, laying a solid foundation for mid- and long-term cooperation
    .

    DSM is a leading global provider of early life nutrition solutions, with a wide range of specialty products including nutritional lipids, vitamins and nutrient premixes
    .
    The acquisition transaction with Glycom gives DSM an even stronger access to potential HMO ingredients to better develop a new generation of nutritional solutions for infants and young children
    .

    This transaction will be a wonderful win-win case
    .
    DSM's large global customer base and wide range of early-life nutrition solutions will better demonstrate the value of HMO products and accelerate the growth of the Glycom brand
    .
    At the same time, DSM has a strong R&D platform and clinical trial technology, which can provide strong support for the development of Glycom's next-generation HMO products and accelerate product replacement
    .
    In addition, DSM can expand its HMO products into other fields, such as infant, child and adult nutrition, as well as formula food for special medical purposes and pet food, further enhancing the growth potential of such products
    .

    Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of Royal DSM, said: “We cannot wait to welcome Glycom to DSM
    .
    Both companies are focused on developing mission-based An ideal partner for oriented, science-based nutritional and wellness solutions
    .
    For DSM, this acquisition is a strategic fit and will enable our Human Nutrition business team to better serve Customers provide innovative early life nutrition solutions
    .
    "

    Odd Hansen, CEO of Glycom, added: "I am delighted to join DSM
    .
    Glycom's HMO products will be integrated into DSM's broad range of early life nutrition solutions for a wide range of customers around the world, which will accelerate Glycom's growth
    .
    " At the same time, DSM's strong R&D platform and clinical trial technology can provide strong support for Glycom's next-generation HMO product development efforts
    .
    DSM is a great company, and Glycom will reach its peak here
    .
    "

    The transaction is expected to close in the second quarter of 2020
    .

    DSM – Bright Technology, Better Life™

    Royal DSM is a mission-oriented global science company active in nutrition, health and green living around the world, dedicated to creating a better life with colorful technology
    .
    DSM creates innovative products and solutions to address the world's toughest challenges while creating economic, environmental and social value for all stakeholders including customers, employees, shareholders and society at large
    .
    DSM provides innovative business solutions in areas including human nutrition, animal nutrition, personal care and fragrance ingredients, medical devices, green products and applications, and new mobility and connectivity
    .
    About 23,000 employees at DSM and its affiliates generate annual net sales of around EUR 10 billion
    .
    The company was founded in 1902 and is listed on Euronext Amsterdam
    .

    DSM in China

    DSM started trading with China as early as 1963 and established its first sales representative office and first production site in China in the early 1990s
    .
    DSM's China regional headquarters and R&D center are located in Shanghai
    .
    Currently, the company has 47 branches in China including 26 production sites, with nearly 4,500 employees
    .
    DSM's business in China has grown steadily and healthily.
    In 2018, China's sales were about RMB 10 billion
    .

    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.