Royal DSM, the global Life Sciences and Materials Sciences company, announces today that it has signed an agreement with P&R Group (Italy) to acquire Vitatene S.A.U., based in León (Spain), a producer of natural carotenoids. The acquisition of Vitatene allows DSM to strengthen the natural carotenoids offerings of its nutrition business as consumer demand for natural products continues to grow.
The transaction is subject to regulatory and other customary approvals and notifications and is expected to close by the end of Q2 2011. Financial details of the acquisition will not be disclosed at this time.
Founded in 2004, Vitatene is a leader in the production and sale of a range of high-value natural carotenoid products derived from fermentation of the fungus Blakeslea trispora. The products are sold under the brandnames Betanat and Lyconat. The products are an addition to DSM's current portfolio of highly functional carotenoids, ranging from beta-carotene to lutein and zeaxanthin.
Leendert Staal, President and CEO of DSM Nutritional Products, said: 'This acquisition fits perfectly with our strategy 'DSM in motion: driving focused growth'. Consumer demand for natural products continues to grow. Vitatene is an excellent fit with DSM's current product portfolio and technological capabilities and will allow us to drive the growth in natural carotenoids.'
Carlo Pizzocaro, CEO of P&R Group, said: 'It is great that we have found such a strong new home for Vitatene's business. We believe this is excellent news for our customers and Vitatene's staff. We will work with DSM to make the transfer as smooth as possible to guarantee business continuity for our customers and thank them for their loyalty.'
Carotenoids are naturally occurring fat-soluble pigments that are synthesized by plants, algae and photosynthetic bacteria. They are the sources of the yellow, orange, and red colors in many plants, such as the orange-red colors of oranges, tomatoes and carrots and the yellow colors of many flowers.
Carotenoids have important benefits in human health. The role of some carotenoids (such as beta-carotene) as the main dietary source of vitamin A has been well studied. In addition, potential protective effects of carotenoids against degenerative eye diseases and other deficiency-related disorders have been recognized. In addition, beta-carotene is an effective and safe natural color. The product forms available allow carotenoids to be used in dietary supplements, beverages and a wide variety of other food applications.
DSM - Bright Science. Brighter Living.(TM)
Royal DSM N.V. is a global science-based company active in health, nutrition and materials. By connecting its unique competences in Life Sciences and Materials Sciences DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials. DSM's 22,000 employees deliver annual net sales of about € 9 billion. The company is listed on NYSE Euronext. More information can be found at www.dsm.com
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Source: DSM N.V. via Thomson Reuters ONE