DSM moves to grow health and nutrition capabilities through postbiotic producer Adare Biome in €275M deal

19 Apr 2023 --- Royal DSM is entering into negotiations to purchase Adare Biome from its parent company, Adare Pharma Solutions, for an enterprise value of €275 million (US$301.2 million). The move will expand the company’s human health and animal nutrition offerings.

DSM states that the acquisition would allow the company to bring some of Adare Biome’s signature postbiotic products to the growing gut health and digestive health segments.

“Adare Biome would be a perfect fit for DSM, with pioneering science that will complement each of our three businesses,” says Philip Eykerman, EVP of health, nutrition and care at DSM.

DSM reorganized in 2021 into three units – food and beverage; health, nutrition and care; and animal nutrition and health.

Tom Sellig, CEO of Adare Pharma Solutions, agrees, stating that DSM has “the infrastructure, strong commercialization and science capabilities to scale [Adare Pharma Solutions’] significant scientific research achieved over the years.”

Proliferating postbiotics
Unlike probiotics, which consist of live bacteria, postbiotics are inanimate microorganisms – or the cellular and metabolites and components of microorganisms – that are able to confer health benefits.

DSM states that the Adare Biome’s Lactéol ingredient could be included in animal feed.As such, scientific evidence is revealing that postbiotics have a longer shelf life and health benefits comparable to probiotics, which could allow for a wider range of applications.

According to DSM, one of the highlights of the merger will be the rapid expansion of ingredients such as Lactéol – a product containing the postbiotic Lactobacillus LB – into its B2C offerings. The company states that the offering has been shown to relieve upset stomachs and aid digestion.

“DSM would be the ideal company to take Adare Biome to a new level and realize the growth potential of postbiotics,” underscores Sellig.

A growing market
DSM further states the acquisition will allow it to develop the applicability of the B2B ingredient for medical nutrition, early life nutrition, dietary supplements and nutritional improvements for malnourishment.

Moreover, Innova Market Insights highlights that digestive health claims in supplements and sports nutrition launches experienced a 32% year-over-year growth globally from 2020 to 2021.

Additionally, DSM states the impending purchase would be its expansion and establishment as a frontrunner in the growing pet and animal nutrition market for microbiome management, increase its pet animal health range and could be included in DSM’s animal feed solutions, such as Bovaer.

“The Adare Biome team will greatly help in accelerating our ‘health from the gut’ strategy as there is considerable untapped potential for next-generation biotics to support the health of people and animals,” Eykerman adds.

The intended purchase of Adare Biome comes alongside DSM’s merger with the world’s largest privately-owned flavor and fragrance company, Firmenich. The combined company, DSM-Firmenich, debuted on Euronext Amsterdam yesterday.

Edited by William Bradford Nichols

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