DSM will acquire Erber, the parent company of Biomin

On June 12, Royal DSM of the Netherlands announced that it had reached an agreement to acquire the Erber Group of Austria with an enterprise value of 980 million euros.

Erber Group’s specialty animal nutrition business Biomin and certified testing laboratory Romer Labs focus on mycotoxin risk management, intestinal health performance management, and food and feed safety diagnostic solutions, expanding DSM’s high value-added specialty Solution product portfolio.

Sanphar and EFB account for 7% of Erber Group’s total sales and are not included in this transaction.

As of the end of March 2020, the total sales of the acquired business for the fiscal year was 330 million euros, and the adjusted profit before interest, tax, depreciation and amortization exceeded 20%, showing a high single-digit organic sales growth in the past 5 years.

DSM stated that the acquisition of the Erber Group is a unique strategic opportunity and is expected to create synergies and improve revenue through the integration of product portfolios, global customer groups and regional advantages. The acquisition also provided DSM with an opportunity to enter the mycotoxin risk management market and expanded the company's position as a leading supplier of the rapidly developing animal intestinal performance management market.

The transaction is still subject to customary closing conditions and is expected to be completed in the fourth quarter of 2020.