DSM Firmenich sells yeast extract business to Lesaffre

DSM Firmenich, an innovator in nutrition, health and beauty, has announced the sale of its yeast extract business to Lesaffre, a major global player in fermentation and microbiology. Yeast extract is part of DSM Firmenich’s Taste, Texture and Health business unit with annual sales of approximately €120 million.

As part of DSM Firmenich’s realignment of its portfolio, the company has deprioritized certain business units. The divestment from the yeast extract business is the result of this strategic review process, which was announced on June 3.
As part of the transaction, Lesaffre will sign an agreement to supply yeast extracts to DSM Firmenich’s Savory business. In addition, DSM Firmenich and Lesaffre will enter into a technology partnership to jointly develop yeast extracts.

Following the transaction, DSM Firmenich will continue to supply Lesaffre with yeast extracts produced in Delft until the end of 2025, after which yeast extract production in Delft will cease. Lesaffre will ensure uninterrupted supply to yeast extract customers and provide them with the same service levels and innovation support as today.

As part of the transaction, some employees working in the yeast extracts division of DSM-Firmenich will transfer to Lesaffre.

The transaction is subject to customary regulatory approvals and consultation with the DSM-Firmenich unions and is expected to be completed by the end of this year. Financial details have not been disclosed.