Dutch life sciences company DSM to acquire US food ingredients maker Fortitech for $634 mn
08 Nov 2012
Dutch life sciences company DSM today agreed to acquire US food ingredients maker Fortitech for $634 million (€495 million) in cash in order to strengthen its nutrition business.
New York-based Fortitech is a privately held company that specialises in customised, value added food ingredient blends for food & beverage, infant nutrition and dietary supplements industries.
Fortitech offers customised solutions in blends with a highly responsive and flexible customer service model. It works with a broad range of externally sourced nutrients and food ingredients including vitamins, minerals, nucleotides, amino acids, herb extracts, nutraceuticals, flavors, seasonings, colours, caffeine, proteins, sweeteners, carbohydrates and enzymes.
With around 520 employees, Fortitech has six production sites located in New York, California, Brazil, Malaysia, Denmark and Poland, and sales offices in China and Mexico.
DSM said Fortitech expected revenues in 2013 would be around $270 million and cost synergies at about 10 per cent of net sales, which will be fully realised by 2015.
In addition, DSM expects one-time synergies – primarily capital expenditure avoidance – at $70 million.
