DSM: ‘Postbiotics deal will make us frontrunner in microbiome management'

By Jane Byrne

- Last updated on GMT

© GettyImages/Parradee Kietsirikul
© GettyImages/Parradee Kietsirikul

Related tags postbiotics Dsm premix pets Gut health

DSM is in exclusive negotiations with Adare Pharma Solutions in order to acquire Adare Biome, a pioneer in the development and manufacturing of postbiotics, for €275m (US$301.3m).

The transaction, it noted, would represent an estimated 2023 EV/EBITDA multiple of 18x.

Postbiotics is a rapidly emerging segment of the gut health market that is projected to grow strongly, claims DSM.

Unlike the live bacteria in probiotics, postbiotics consist of inanimate microorganisms and/or their cellular components and metabolites that confer a health benefit to the host. A growing body of scientific evidence​ shows that postbiotics deliver comparable health benefits.

DSM reports that postbiotics are also more stable, so they have a longer shelf-life and can be used in a wider range of applications and in new ingredient combinations.

Incorporation of postbiotics in premixes

In terms of the potential benefits of this deal for its animal nutrition business, a spokesperson for the Dutch multinational told FeedNavigator: “Adare Biome has various solutions for animals; specifically for pets (Lbiome - Adare Biome) and for farm animals (Lbiotix - Adare Biome), which will help establish DSM as a frontrunner in the growing microbiome management market for the former and expand our animal nutrition and health range, where the stability of postbiotics means they can be incorporated into our premix feed solutions.”

Adare Biome's origins date back to 1907 when French chemist Dr Pierre Boucard launched the inactivated lactobacillus-based product, Lactéol. 

Tom Sellig, CEO of Adare Pharma Solutions, believes DSM is the ideal company to take Adare Biome to a new level and realize the growth potential of postbiotics, adding that it has the infrastructure, commercial and scientific capabilities to scale the significant scientific research achieved over the years.

“Adare Biome would be a perfect fit for DSM, with pioneering science that will complement each of our three businesses,” commented Philip Eykerman, DSM's executive VP, health, nutrition and care. “There is considerable untapped potential for next-generation biotics to support the health of people and animals.”

The deal is subject to consultation with the workers council and customary regulatory conditions. 

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