Lesaffre to purchase US$129 million yeast extract business from dsm-firmenich
12 Jun 2024 --- Today, Dutch nutrition and health supplier dsm-firmenich signed an agreement with the Swiss fermentation and microorganism organization Lesaffre to sell its €120 million (US$129 million) yeast extract operation, previously part of dsm-firmenich’s Taste, Texture and Health business unit.
The company is divesting from yeast extraction as part of a strategic review process announced on June 3, as it tunes its portfolio and de-prioritizes certain business segments.
Following the agreement, Lesaffre will supply yeast extract to dsm-firmenich for its savory business. The two companies are additionally entering a technology partnership for the development of yeast extracts.
Until the end of 2025, Lesaffre will receive yeast extracts produced by dsm-firmenich in Delft, the Netherlands. After that point, dsm-firmenich will cease its yeast extraction in Delft. Lesaffre pledges an uninterrupted supply of yeast extract and the same levels of service and innovation support.
While dsm-firmenich has made the decision to refocus its strategic activities, it highlights that it is not changing its commitment to its Delft location — its largest in the Netherlands — describing the Biotech Campus Delft as a “strategic location.”
Currently, dsm-firmenich employs more than 1,000 employees who are researching food applications at its Delft location.
Also as part of the deal, some of dsm-firmenich employees working in the yeast extract business will transfer to Lesaffre.
The translation is now subject to regulatory approval and council consultations at dsm-firmenich and is expected to be fully closed by the end of 2024.
The Delft location of dsm-firmenich is also the global headquarters of its Taste, Texture and Health business unit, which boasts a turnover of €3 billion (US$3.3 billion). The company is currently building its new Taste, Texture and Health headquarters with application facilities — bakery, cheese factory, sensory laboratory and demonstration kitchen — set to open in 2025.
Edited by Milana Nikolova
