DSM has secured a deal to acquire dairy solutions provider CSK Food Enrichment for a cash consideration of about €150 million.
With the purchase, DSM aims to strengthen its product portfolio and expertise in the food and beverage sector, in particular in the area of taste, texture and bio-preservation solutions for semi-hard cheeses such gouda and edam.
DSM believes the combination of its dairy business with CSK will be well placed to address the dairy cultures market.
CSK’s Wageningen dairy application centre and Leeuwarden fermentation facility in the Netherlands are both included in the deal.
Netherlands-based CSK generated net sales of €65 million in 2018 and has approximately 180 employees, around 150 of whom are based in the Netherlands.
“We are very much looking forward to welcoming Royal CSK to DSM. Our companies have a great fit together, with shared passion for dairy, skilled and dedicated people, and complementary solution portfolios,” said Patrick Niels, DSM Food Specialties president.
“This is also a testament to DSM’s commitment to the dairy industry, which we support throughout our nutrition businesses. Today’s dairy needs are constantly changing, and DSM continues to invest in enabling customers to keep satisfying consumer demand, helping them grow their business, while we grow ours in line with our purpose-led, performance-driven strategy. The acquisition of CSK will greatly strengthen our ability to do so.”
Sanne Melles, CEO of CSK, added: “In DSM, we recognise the opportunity for CSK to make the leap forward that we were looking for. Our combined capabilities will accelerate our international growth ambition and enhance our innovative offerings to the dairy industry”.
The transaction is expected to close before the end of the year.