Germantown-based
First Choice Ingredients will be acquired by
Royal DSM in a deal with an enterprise value of $453 million, DSM announced Friday.
First Choice Ingredients is a supplier of flavorings used in soups, snacks, salad dressings and sauces, dairy products and plant-based meat and dairy alternatives. It will have estimated sales of $75 million this year. The company has around 100 employees and facilities in Germantown and Menomonee Falls.
“This is the right time in First Choice Ingredients’ journey to become part of a company such as DSM,” said Jim Pekar, president of First Choice Ingredients. “The people of First Choice Ingredients will continue to deliver our legendary products and customer service with a can-do attitude and relentless focus on product integrity and innovation. They are some of the most hard-working and loyal teammates ever assembled under one roof.”
DSM is based in the Netherlands and serves a variety of markets including animal feed, dietary supplements, early life nutrition, food and beverage, personal care, automotive and electronics.
The enterprise value of $453 million, which includes debt, represents a multiple of 19.8 times estimated adjusted EBITDA for 2021.
“Our companies are a great fit, with a shared passion for science-based solutions for delicious, nutritious, and sustainable food and beverage products. This acquisition is an attractive next step for DSM as we continue to build our health, nutrition, and biosciences capabilities,” said Geraldine Matchett and Dimitri de Vreeze, co-CEOs of Royal DSM.
Patrick Niels, president of DSM Food Specialties, said the acquisition would extend DSM’s offerings in food and beverage. The company also described the deal as “highly synergetic for both companies.”
“DSM can further accelerate the growth of First Choice Ingredients by offering their products outside the U.S. to DSM’s broad global customer base and integrating their solutions in DSM’s full offering for F&B customers,” DSM said in a press release.
