dsm-firmenich signed an agreement to sell its yeast extract business to Lesaffre. Yeast Extracts is part of dsm-firmenich’s Taste, Texture & Health business unit, with annual sales of about €120 million.
As part of dsm-firmenich’s tuning of its portfolio, the company de-prioritized certain business segments. The divestment from Yeast Extracts is an outcome of that strategic review process.
As part of the transaction, Lesaffre will enter into an agreement to supply yeast extracts to dsm-firmenich for its Savory business. In addition, dsm-firmenich and Lesaffre will enter a technology partnership for the development of yeast extracts.
After the completion of the deal, dsm-firmenich will continue to supply yeast extracts produced in Delft to Lesaffre until the end of 2025, after which point the yeast extracts production in Delft will be discontinued. Lesaffre will ensure uninterrupted supply to Yeast Extracts customers and provide them with the same service levels and innovation support as today.
Also as part of the deal, some of the dsm-firmenich employees working on Yeast Extracts will transfer to Lesaffre.
Strategic actions to strengthen its position
During its Capital Markets Day (CMD) on June 3 in Paris, the company presented its strategy to investors and analysts.
Dimitri de Vreeze, CEO, commented, “Against the backdrop of a challenging 2023, with tough macroeconomic conditions and unprecedented low vitamin prices, we took decisive and immediate actions, accelerating our integration efforts, transforming our vitamins business, and reviewing our portfolio. It became clear that the Animal Nutrition & Health business would thrive better under different ownership, and last February, we announced our plans to separate this business unit from the group.
Following the completion of our strategic business and portfolio review, we decided to de-prioritize certain business segments, and our path forward is guided by a finely tuned strategy, prioritizing high-growth and high-margin segments in nutrition, health, and beauty. This focused approach, supported by continued progress in delivering synergies, ensures we are not just moving fast but also moving smart, aligning our efforts with the segments that leverage global macro trends and promise good returns and impact. This meticulous prioritization reflects our commitment to excellence and our determination to lead in every aspect of our business.
With leading-edge innovation and creation capabilities at the heart of our strategy, we aim to accelerate our growth through a strong focus on science and sustainability. By doing so, we are not just keeping pace with the industry but setting the pace. Our innovation and creation-led approach is designed to fuel growth and create value in ways that are both responsible and forward-thinking, which makes us confident about achieving our mid-term objectives. Together, with our unique expertise and unwavering commitment, we help shape the future of the industry as innovators in nutrition, health and beauty, bringing progress to life for people and planet."
