Is DSM set to acquire Biomin’s parent group?

By Jane Byrne contact

- Last updated on GMT

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Related tags: Biomin, Dsm

DSM is allegedly among the final candidates to buy the Erber Group, which includes animal feed additives producer Biomin, according to Reuters citing sources close to the matter.

The Erber Group is family run, with headquarters in Austria. Its turnover is in the region of €400m. Biomin is core but the Group also comprises food and feed safety diagnostics player, Romer Labs, animal health products firm, Sanphar, and biotechnology company, EFB.

DSM, reportedly, has entered exclusive talks on the deal, which has an estimated value of around €1bn (US$1.14 bn), while bidding rival, Swedish company EQT, is said to have withdrawn from the process, as per the Reuters story. 

The Netherlands headquartered DSM has repeatedly indicated its interest in acquisitions that would strengthen its nutrition business.

Spokespersons for Biomin and EQT declined to comment on the reports, while DSM did not return our request for feedback.

Expansion goals set out

In an interview in October 2018, Dr Jan Vanbrabant, CEO, Erber Group told FeedNavigator the plan for the company was to double turnover every five years.

“It is a target we set ourselves. I do not know what is going to happen five years from now, but we want to keep putting the bar higher. However, we think it [that target] is achievable. What we see is that antibiotic replacement is getting a lot of traction. There is a big opportunity there - with the existing products we have like probiotics, phytogenics, and acids also, we already have very good growth. In terms of probiotics, we are currently only in poultry and aqua. We are researching [their use] in other species as well and that will open up more [doors]. Our phytogenic product, Digestarom DC, is going to bring a lot of extra business, for sure.

“Next to that, we are looking at products that will complement our portfolio – products that fit into our core competence of fermentation.” 

Asked then whether the current business model of the group supports its expansion goals, whether there was not a conflict in relation to its family funded, independent structure and its growth ambitions, Vanbrabant remarked:

“They are no conflicts in that regard. We are a financially healthy company. We are blessed with owners that really are ambitious and want to keep on investing in the business. They are highly committed. With that, we can go a long way. Critically, we do not want to grow just to grow. We want to grow where we see value. Doing it that way, it takes a little bit longer, but from a business point of view, it is more sustainable.”

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