French yeast manufacturer Lesaffre has signed an agreement with DSM-Firmenich, a provider of nutrition, health and beauty products, to acquire its yeast extract business.
In addition, the two companies signed an agreement for a multi-part collaboration in yeast derivatives serving the savoury ingredients space.
Lesaffre will acquire DSM-Firmenich’s yeast extract business go-to-market and know-how, to produce the yeast extract products in its manufacturing network.
The transaction is expected to be completed by the end of the year, subject to receipt of certain customary regulatory approvals and works council consultations at DSM-Firmenich.
Lesaffre CEO Brice-Audren Riché said: “This transaction completely fits in our strategy to become a truly global specialist in yeast extracts and derivatives for the savoury ingredients market.
“The collaboration with DSM-Firmenich will help us keep pace in an ever-progressing industry and allow us to expand our business by integrating great people and new in-house supply capabilities.
“We very much look forward to welcoming DSM-Firmenich employees within our Group to pave with them the way for sustained growth and expanded customer diversification.”
Lesaffre said that the acquisition of talent and know-how, along with the technology partnership will strengthen Lesaffre’s presence in the savoury ingredients market.
It reinforces the company’s current R&D expertise and expands its range of products.
Also, the acquisition of DSM-Firmenich’s yeast extract processing technologies will help Lesaffre better serve customers in savoury and other fermentation-based applications.
Biospringer by Lesaffre, a provider of advanced natural-origin solutions from yeast fermentation, will offer a wider range of products and solutions, to improve taste, texture, and other properties.
DSM-Firmenich taste, texture and health BU president Patrick Niels said: “We have found the perfect home for our yeast extract business and those employees who will join Lesaffre, where they will have the opportunity to further develop their careers.
“With this transaction, our customers are ensured of continuity of supply of the products and product brands they like and are used to – but now as part of Lesaffre’s portfolio of innovative food solutions.
“We look forward to continuing to work closely with Lesaffre on the development of yeast extract knowledge and expertise through the technology partnership agreement.”
