Royal DSM, the Dutch multinational human and animal health and nutrition group, has acquired the majority of the Erber Group, subject to regulatory conditions, in a deal expected to close in the final quarter of 2020. The Group includes the Biomin feed additive business and leading Mycofix mycotoxin binder brand.

The Erber Group grew out of a company founded in Austria in 1983 to manufacture feed vitamin and mineral premixes under the Biomin brand but using natural rather than antibiotic growth promoters. It acquired the Interpremix business in 1985 for its production facilities and work into developing mycotoxin binder work which later resulted in the Mycofix range of products.

Biomin and Interpremix were split into separate companies within the group, with the addition of the US based Romer Labs feed and food testing and diagnostics company in 1999. Erber now has bases in Europe, North and South America, China and Asia. Two Erber divisions – the animal health distributorship Sanphar and biological crop protection through fermentation products EFB, are not included in the sale – they account for some 7% of current Group sales.

DSM has paid €980 million for Erber, which it says is some 14 times the Groups 2020 EBITDA for the year ending September 2020. Biomin and Romer Labs’ mycotoxin risk management, gut health performance management, and food and feed safety diagnostic solutions will complement DSM’s portfolio and geographic reach. The acquired businesses had combined sales of €330m to the end of March 2020.

“Biomin’s patented and proprietary technology provides the most scientifically advanced mycotoxin protection available,” notes DSM. “Biomin is also a major producer of phytogenic and probiotic feed alternatives to antibiotics, which complements and strengthens DSM’s position in the rapidly growing global eubiotics market for improving animal gut health. DSM’s extensive global network of food and beverage customers as well as feed customers stand to benefit from Romer Labs’ expertise and the combined group’s data-based quality assurance offering.

“The acquisition of Erber Group further strengthens DSM’s expertise and reputation as a leading provider of animal health and nutrition solutions for farm productivity and sustainability, with an emphasis on emissions reduction, feed consumption efficiency, and better use of water and land,” it continues.

“Biomin and Romer Labs will help strengthen and accelerate the growth of our specialty animal nutrition and health offering, including our big data and diagnostic capabilities,” state DSM’s joint chief executives Geraldine Matchett and Dimitri de Vreeze. “It was immediately clear to us that the people at Erber Group share our purpose-led mission and will make a wonderful addition to DSM.”

Dr Erich Erber, founder and president of the Erber Group, adds: “In DSM, I recognize the mutual values of sustainable stewardship that are so important to us. The world must reduce farming’s environmental impact at the same time as increasing protein production to feed 10 billion people by 2050. To do that, we have to make sure protein is produced sustainably – using renewable ingredients as much as possible – while protecting the well-being of animals. DSM is the perfect home for our businesses, as Biomin and Romer Labs will be able to use their new scale to intensify our joint contribution to a more sustainable world’s food supply”.