October 8, 2024

By Gerelyn Terzo, Global AgInvesting Media

Lesaffre, a Northern France-based food and beverage manufacturer specializing in fermentation and microorganisms, has come full circle with its previously announced acquisition of dsm-firmenich’s yeast extract business. The deal is now complete, strengthening Lesaffre’s commitment to innovation in the savory ingredients market and ushering in a new chapter for dsm staff. As a result of the transaction, Lesaffre’s Biospringer division will combine with dsm-firmenich’s yeast derivatives processing technologies and products, where several dozen of the target company’s employees will now be developing yeast extracts at a different site.

In a deal billed as an acquisition of talent, know-how and technology, Lesaffre’s historic yeast-producing business unit Biospringer will integrate dsm-firmenich’s yeast derivatives processing technologies as well as its products and relevant employees. Lesaffre expects to strengthen its current R&D expertise and expand its product lineup.

Patrick Niels, dsm-firmenich president of Taste, Texture & Health business and a member of the company’s executive committee, shared how the deal was bitter sweet. One the one hand, dsm found a “good new home for a large number of employees who will be working at Lesaffre.” On the other hand, it was difficult to witness the discontinuation of the company’s historic industrial yeast production activities. Nevertheless, he is quick to recognize the synergies, as yeast extracts are central to Lesaffre’s strategy.

For a while, dsm-firmenich will continue to supply yeast extracts produced locally to Lesaffre to ensure a seamless transition while the company’s products and brands are being transferred. However, at some point that production will cease in what Niels called a “significant shift” that the company doesn’t take lightly. The companies have also struck a technology partnership through which dsm-firmenich can harness Lesaffre’s knowledge and expertise for its savory business.

European M&A across sectors has hit a stride in 2024 in terms of deal values, rising 29 percent in Q2 compared with year-ago levels. However, deal volume in the period fell by 15 percent year-over-year to just under 3,000 deals, per S&P Global data.

Lesaffre CEO Brice-Audren Riché stated, “This transaction completely fits in our strategy to become a true global specialist in yeast extracts and derivatives for the savory ingredients market. Close to our customers on all continents, we develop tailored solutions fitting to local cultures, consumer tastes and market trends. To maintain excellence in biomanufacturing, we also have invested in the last few years in new biosciences technologies including high-throughput strain screening. 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 welcome dsm-firmenich employees within our group to pave with them the way for sustained growth and expanded customer diversification.”

Patrick Niels, dsm-firmenich president of Taste, Texture & Health and a member of the company’s executive committee, said, ‘’With a similar history of more than 150 years of purpose driven biotechnology R&D and innovation, to nourish people and our planet, 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.”

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