Royal DSM increases stake in leading specialty food ingredient producer

Royal DSM increases stake in leading specialty food ingredient producer

HEERLEN, 18-Mar-2019 — /EuropaWire/ — Royal DSM has announced it has completed the increase of its stake in the leading specialty food ingredient producer Yantai Andre Pectin Co., Ltd. The increase has originally been announced last month. With the current increase Royal DSM  now controls 75% in the company.

Shandong Andre Group Co., Ltd. will control the remaining 25% of the shares in Andre Pectin. The company supplies raw materials and utilities.

Initially, Royal DSM acquired a minority interest (29%) in Andre Pectin during 2013. The company then had to deal with a shareholders dispute, which now has been resolved. Royal DSM has now reached to an agreement with the other shareholders to purchase an additional 46% stake for €150 million thus increasing its interest in the company to 75%. The total acquisition price represents an EV/EBITDA multiple of about 13x based on the 2019 expected EBITDA of the company, excluding synergies.

Andre Pectin has €65 million sales per year with an EBITDA margin above 25%.

Based in Yantai, Shandong Province in China Andre Pectin employees over 400 people and is Asia’s largest producer of apple and citrus pectin, hydrocolloids providing texture solutions for food, beverages and personal care, with premier access to the world’s fastest growing specialty food ingredients market.

SOURCE: Royal DSM

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