Royal DSM acquired Cargill cultures and enzymes business

Vitamin maker Royal DSM said Friday it has reached an agreement to acquire Cargill Inc’s cultures and enzymes business in an 85 million euro ($109.8 million) cash deal.

The transaction is expected to close in the next couple of months. Netherlands-based DSM and Cargill said in September they were in talks about a potential deal.

The unit of Wayzata, Minn.-based Cargill has factories in Waukesha and France and sales of about $58 million per year, supplying the dairy and meat industries.

DSM said the acquisition allows it to boost sales and capture benefits in global manufacturing and customer reach as well as innovation capabilities in biotechnology and other areas. It also makes DSM a tier one supplier of cultures and enzymes to the global dairy market.

“This is a very important growth-enhancing acquisition for our food specialties business and fully fits our strategy as we continue to create value for all stakeholders by providing innovative, sustainable solutions to the world’s greatest current and future challenges,” said Stephan Tanda, a member of the DSM board who oversees its nutrition unit.

The acquisition of the Cargill business is the eighth for DSM’s nutrition division since September 2010.