Royal DSM signed an agreement to acquire Norwegian company Vestkorn Milling, one of Europe’s leading producers of pea- and bean-derived ingredients for plant-based protein products, for an enterprise value of EUR65m. Vestkorn Milling supplies proteins, starches and dietary fibers for plant-based foods, pet food and animal feed. The company has 55 employees and is based on the south-west coast of Norway.
The acquisition is in line with DSM’s strategy to build an alternative protein business and comes in addition to DSM’s innovative CanolaPRO™ rapeseed protein isolate, which will commercially launch next year. Vestkorn Milling’s proteins, starches and dietary fibers are complementary to DSM’s offering for companies developing plant-based food and beverages, which includes vitamins, algal lipids and minerals to improve nutritional value; texturizing hydrocolloids; and flavors and yeast extracts as well as enzymes to improve protein taste and functionality.
Patrick Niels, Executive Vice President of DSM’s Food & Beverage division, commented on the acquisition: “We very much look forward to welcoming Vestkorn Milling and their team to DSM. Increasingly, food and beverage producers around the world are looking to partners who can offer an integrated portfolio of ingredients, expertise, and solutions to help them differentiate and get to market fast. This is especially important in the highly dynamic meat alternatives space, where consumer and societal expectations around authentic taste, texture, and nutritional profile, as well as climate impact, are becoming more and more sophisticated.”
Aslak Lie, CEO of Vestkorn Milling, added: “Through the cooperation with DSM we have taken a huge step towards becoming a global leader of pulse-based ingredients. Over the past years we have significantly expanded our business and market. With DSM, we have got a long-term oriented owner that will fuel further growth and expansion. We are thrilled by this opportunity, and we look forward to being a part of the DSM team.”
With the acquisition, DSM advances towards its Food System Commitments to reach 150 million people with sustainable plant-based protein foods by 2030. Subject to customary conditions, the transaction is expected to close in Q4 2021.