DSM to Acquire First Choice Ingredients to Accelerate Growth in F&B
Royal DSM recently announced that it has signed an agreement to acquire First Choice Ingredients, a leading supplier of dairy-based savory flavorings for an enterprise value of USD453m.
With headquarters in Germantown (WI, USA) and three manufacturing facilities in the vicinity, First Choice Ingredients and its approximately 100 employees have built a leading position in the US taste market as a developer of clean label, fermented dairy and dairy-based savory flavorings for taste and functional solutions across a wide range of applications.
The company ferments and blends a variety of natural dairy products with cultures and enzymes to create clean label taste solutions integrating sensory and functional benefits. Leveraging its R&D and application expertise, First Choice Ingredients works as an innovation partner with food producers, flavor houses and food service suppliers in applications such as soups, snacks, salad dressings and sauces, prepared meals, sweet baking, as well as dairy products and plant-based meat and dairy alternatives.
According to a press release, this acquisition by DSM will be highly synergetic for both companies. DSM can further accelerate the growth of First Choice Ingredients by offering their products outside the US to DSM’s broad global customer base and integrating their solutions in DSM’s full offering for F&B customers. The acquisition gives First Choice Ingredients access to DSM’s world-leading biotechnology toolbox, fermentation know-how, and global customer relationships.
Geraldine Matchett and Dimitri de Vreeze, co-CEOs of Royal DSM, commented: “We look forward to welcoming the First Choice Ingredients people to DSM. Our companies are a great fit, with a shared passion for science-based solutions for delicious, nutritious, and sustainable food and beverage products. This acquisition is an attractive next step for DSM as we continue to build our health, nutrition, and biosciences capabilities.” Patrick Niels, President of DSM Food Specialties, added: “We are very pleased with the addition of First Choice Ingredients and its skilled workforce to our business. It will enable us to extend our integrated solutions offering in food and beverage, and provide our customers with innovative taste solutions for the new and improved end-products today’s discerning consumers continually demand.”