Brief: DSM acquires one of Europe’s top pea protein producers in $74m deal

• Netherlands chemicals giant DSM has agreed to buy Norwegian pea protein producer Vestkorn Milling in a deal worth €65 million ($73.7 million).
• The acquisition of Tau-based Vestkorn “is a further step in DSM’s strategy to build an alternative protein business,” the Dutch company said in an announcement.
• “Food and beverage producers around the world are looking to partners who can offer an integrated portfolio of ingredients, expertise, and solutions to help them differentiate and get to market fast,” said Patrick Niels, executive vice president, food and beverage, DSM. “This is especially important in the highly dynamic meat alternatives space, where consumer and societal expectations around authentic taste, texture, and nutritional profile, as well as climate impact, are becoming more and more sophisticated.”

Why it matters:

Vestkorn supplies proteins, fibers, and starches derived from peas and beans to manufacturers of plant-based meat alternatives, pet foods, and animal feed.

According to DSM, the Norwegian company’s portfolio of ingredients is “highly complementary” to its own growing line-up of plant-based offerings, which includes vitamins, algal lipids, texturizing hydrocolloids, yeast extracts, and enzymes.

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“Through the cooperation with DSM we have taken a huge step towards becoming a global leader of pulse-based ingredients,” said Vestkorn Milling CEO Aslak Lie.

The acquisition is expected to close before the end of this year.