DSM to acquire Vestkorn Milling to accelerate growth in plant-based proteins

HEERLEN, Netherlands, Nov. 29, 2021 /PRNewswire/ -- Royal DSM, a global purpose-led science-based company, announces today that it has signed an agreement to acquire Norwegian company Vestkorn Milling, one of Europe's leading producers of pea- and bean-derived ingredients for plant-based protein products, for an enterprise value of €65m.

Vestkorn Milling is well-positioned in the buoyant alternative protein market, supplying proteins, starches and dietary fibers for plant-based foods, pet food and animal feed. The company has 55 employees and is based in Tau on the south-west coast of Norway.

Patrick Niels, Executive Vice President of DSM's Food & Beverage division, commented on the acquisition: "We very much look forward to welcoming Vestkorn Milling and their team to DSM. Increasingly, food and beverage producers around the world are looking to partners who can offer an integrated portfolio of ingredients, expertise, and solutions to help them differentiate and get to market fast. This is especially important in the highly dynamic meat alternatives space, where consumer and societal expectations around authentic taste, texture, and nutritional profile, as well as climate impact, are becoming more and more sophisticated."

Aslak Lie, CEO of Vestkorn Milling, added: "Through the cooperation with DSM we have taken a huge step towards becoming a global leader of pulse-based ingredients. Over the past years we have significantly expanded our business and market. With DSM, we have got a long-term oriented owner that will fuel further growth and expansion. We are thrilled by this opportunity, and we look forward to being a part of the DSM team."

The acquisition is a further step in DSM's strategy to build an alternative protein business and will provide synergy with DSM's innovative CanolaPRO™ rapeseed protein isolate, which will commercially launch next year.

Vestkorn Milling's proteins, starches and dietary fibers are highly complementary to DSM's broad offering to companies developing plant-based food and beverages, which includes vitamins, algal lipids and minerals to improve nutritional value; texturizing hydrocolloids; and flavors and yeast extracts as well as enzymes to improve protein taste and functionality.

The combination will furthermore help DSM deliver on its Food System Commitments to reach 150 million people with delicious, nutritious and sustainable plant-based protein foods by 2030.

Subject to customary conditions, the transaction is expected to close in Q4 2021.

DSM
Royal DSM is a global, purpose-led company in Health, Nutrition & Bioscience, applying science to improve the health of people, animals and the planet. DSM's purpose is to create brighter lives for all. DSM's products and solutions address some of the world's biggest challenges while simultaneously creating economic, environmental and societal value for all its stakeholders – customers, employees, shareholders, and society at large. DSM and its associated companies employ approximately 23,000 people around the world and deliver annual net sales of about €10 billion. The company was founded in 1902 and is listed on Euronext Amsterdam. More information can be found at www.dsm.com.

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This press release may contain forward-looking statements with respect to DSM's future (financial) performance and position. Such statements are based on current expectations, estimates and projections of DSM and information currently available to the company. DSM cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. DSM has no obligation to update the statements contained in this press release, unless required by law. The English language version of the press release is leading.

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