The deal is worth $453 million
Royal DSM has signed an agreement to acquire First Choice Ingredients, a leading supplier of dairy-based savory flavorings for an enterprise value of $453 million.
This transaction represents an EV/EBITDA multiple of 19.8x based on the estimated 2021 Adjusted EBITDA. The estimated 2021 sales amount to about $75 million.
With headquarters in Germantown (US) and three manufacturing facilities in the vicinity, First Choice Ingredients and its approximately 100 employees have built a leading position in the US taste market as a developer of clean label, fermented dairy and dairy-based savory flavorings for taste and functional solutions across a wide range of applications.
The company ferments and blends a variety of natural dairy products with cultures and enzymes to create clean label taste solutions integrating sensory and functional benefits.
Leveraging its R&D and application expertise, First Choice Ingredients works as an innovation partner with food producers, flavor houses and food service suppliers in applications such as soups, snacks, salad dressings and sauces, prepared meals, sweet baking, as well as dairy products and plant-based meat and dairy alternatives.
The acquisition gives First Choice Ingredients access to DSM’s world-leading biotechnology toolbox, fermentation know-how, and global customer relationships.