DSM-Firmenich expands postbiotic market presence with US$299.5M Adare Biome acquisition

03 Jul 2023 --- On the heels of a recent merger and restructuring of segments of the company’s vitamin production, DSM-Firmenich has acquired postbiotics producer Adare Biome for €275 million (US$299.5 million). According to the company, the price represents an 18 times multiple of Adare Biome’s 2023 enterprise value to earnings before interest, tax, depreciation and amortization.

The purchase will expand the company’s human health and nutrition offerings for gut and digestive health and the microbiome and postbiotic spaces. According to Innova Market Insights, digestive health claims in supplements and sports nutrition launches increased 32% (CAGR) globally, when comparing 2020 and 2021.

Tom Sellig, CEO at Adare Pharma Solutions, says the acquisition represents a perfect partnership to help realize the growth potential of postbiotics. 

“They have the infrastructure, together with strong commercialization and science capabilities, to scale the significant scientific research that we’ve achieved over the years,” he explains.

Philip Eykerman, the president of Health, Nutrition & Care at DSM-Firmenich, hailed Adare Biome as a “global leader in the research and manufacturing of postbiotics with over a century of pioneering science in its heritage.” 

Promoting postbiotic’s potential
Postbiotics are a preparation of inanimate or non-living microorganisms and their components that confers a health benefit on the host. Compared to probiotics, which utilize living or active microorganisms, postbiotics can have a longer shelf-life and greater application versatility.The acquisition will allow DSM-Firmenich to further develop B2B postbiotic for pet and animal nutrition.

Recent research has found that some strains of postbiotics can enhance immunity, even aiding in a quicker recovery from COVID-19 symptoms, while others have shown some strains can enhance and support developing infants’ microbiomes.

“The Adare Biome teams will greatly help in driving our ‘Health from the Gut’ strategy and enable us to accelerate the creation of next-generation biotics to support the health of people and animals,” says Eykerman.

Expanding markets
According to DSM-Firmenich, the purchase, announced earlier this year, will allow it to extend the availability of Adare Biome’s digestive health postbiotic Lactéol. This will be accomplished through DSM-Firmenich’s B2C unit, I-Health.

Eykerman highlights that the acquired postbiotic producer will complement three of its four business units. Additionally, the company states that acquisition will spur further development of B2B ingredients in the early life and medical nutrition spaces, as well as the dietary supplement segment. The company will look at the postbiotic effects on mal- and undernutrition.

It will also expand DSM-Firmenich’s reach and offerings in its pet and animal nutrition and health ranges – a key focus as stated in the company’s recent Q2 report.

Eykerman elaborates that the DSM-Firmenich’s “strong global presence and reach in local markets will enable us to deliver Adare Biome products to customers in a faster, more efficient way to bring the proven benefits of postbiotics to a wider range of people around the world.”

Edited by William Bradford Nichols