DSM-Firmenich

$450m value-add Ingredient acquisition

  • Sectors : Foods
  • Companies : DSM-Firmenich

Ratings and price correct at time of issue.

  • DSM-Firmenich

    Closing Price: 17780c

  • RATING 09/10/20

  • PREVIOUS RATING 13/02/20

    NEUTRAL

DAVY VIEW

DSM has announced the acquisition of First Choice Ingredients (FCI), a supplier of dairy-based savoury flavourings, for an EV of US$453m (19.8x 2021 EV/EBITDA). The acquisition strengthens DSM’s position in Flavours and clean-label solutions and will be housed in the Food Specialties division. The acquisition multiple reflects heritage, track record (five-year sales CAGR of high-single-digit) and attractive sector fundamentals. The transaction signals DSM’s intent to upweight its position in value-add ingredients (Glycom) and solutions (CSK and Amyris F&F), particularly in dairy – thus competing more with traditional Ingredient and Flavour houses.

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Sep 3 2021, 09:10 IST/BST

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