DSM has agreed to acquire First Choice Ingredients, a US-based supplier of dairy-based savoury flavourings, for an enterprise value of $453 million.
Serving customers across a range of food and beverage categories, First Choice Ingredients ferments and blends natural dairy products with cultures and enzymes to create clean label taste solutions.
The company also works as an innovation partner with food producers, flavour houses and foodservice suppliers, across applications including sauces, snacks, prepared meals, dairy products, and meat and dairy alternatives.
First Choice Ingredients is headquartered in Germantown, Wisconsin, with three manufacturing facilities in the vicinity, and the company has around 100 employees.
Following the acquisition, DSM says that it will be able to accelerate First Choice Ingredients’ growth by offering the company’s solutions outside the US to DSM’s global customer base.
Under its new ownership, First Choice Ingredients will also have access to DSM’s biotechnology toolbox, fermentation knowledge and global customer relationships.
“We are very pleased with the addition of First Choice Ingredients and its skilled workforce to our business,” said Patrick Niels, president of DSM Food Specialties.
“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.”
Roger Mullins, executive VP of First Choice Ingredients, added: “We are excited to join DSM. This will enable us to accelerate our growth by adding our taste solutions to DSM’s broad portfolio of global products and integrated offerings to meet the needs of our customers and create new opportunities”.
“This combination will allow access to DSM’s powerful toolbox of fermentation technology.”
The transaction – which is subject to regulatory approval – is expected to close in the last quarter of 2021.
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