DSM acquires Valley Research to strengthen food enzymes activities

11 July 2008

Global life sciences and materials sciences company Royal DSM N V, the company headquartered in the Netherlands, today announces the acquisition of the business and substantially all of the assets of US-based Valley Research Inc, strengthening its global position in food enzymes, for an undisclosed sum.

A privately held biotechnology company founded in 1984, Valley Research Inc., offers a broad range of enzymes, supported by technical laboratories and excellent production facilities. Its products are used in dietary supplements, dairy, juices and wines.

DSM Valley Research, Inc will become part of DSM Food Specialties, a global leader in ingredient solutions for the food and beverage industries. The market for bio-ingredients, including food enzymes, has shown continuous volume growth in recent years, driven by a growing demand for healthy nutrition such as low-salt and low-fat foods, food safety, convenience and the need for natural ingredients.

''Our sales in food enzymes have shown strong growth in recent years,"  said Stephan Tanda, member of the managing board of DSM. "It remains a very interesting growth area for DSM and is one of the ingredients in reaching our targets as set out in Vision 2010 - Building on Strengths. This acquisition of Valley Research will reinforce our leading global position in food enzymes and I expect Valley Research to generate additional value for our customers and shareholders''

The acquisition of Valley Research enables DSM Food Specialties to strengthen its product portfolio, while at the same time the company can now offer regional blending and solution providing platforms to customers.

Art Sears, president of Valley Research, said, ''By joining DSM, we are convinced we have chosen the best company to take our know-how and products to the next level, assuring uninterrupted service for our customers and a new platform for further growth''. After the acquisition Mr. Sears will stay involved with DSM Valley Research's food enzymes business as an advisor.

DSM Food Specialties' leading enzyme and fermentation technology, combined with its application knowledge, enables the company to develop enzymes that help customers to achieve their manufacturing goals. Enzymes can ensure cost savings and promote a more sustainable way of producing by improving processing efficiency, replacing physical and chemical treatments, reducing energy needs and using fewer raw materials.