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DSM-Firmenich has agreed to sell its yeast extract business, Yeast Extracts, to fermentation and microorganism specialist Lesaffre.

Yeast Extracts is part of DSM-Firmenich's Taste, Texture & Health business unit and has annual sales of around €120 million. As part of DSM-Firmenich's portfolio optimisation, the company de-prioritised certain business segments – this divestment is an outcome of the strategic review process.

Under the transaction, Lesaffre will enter into an agreement to supply yeast extracts to DSM-Firmenich for its Savory business and the two companies will enter a technology partnership for the development of yeast extracts.

The acquisition of talent and know-how and the tech partnership will strengthen Lesaffre's position in the savoury ingredients market, bolstering its current R&D expertise and expanding its range of products, bolstering Lesaffre’s offerings in savoury and other fermentation-based applications.

After the completion of the deal, DSM-Firmenich will continue to supply yeast extracts produced in Delft, the Netherlands, to Lesaffre until the end of 2025, after which point production of yeast extracts in Delft will be discontinued. Lesaffre will ensure consistent supply to Yeast Extracts’ customers. Some of the DSM-Firmenich employees working on Yeast Extracts will transfer to Lesaffre.

Brice-Audren Riché, CEO of Lesaffre, said: "This transaction completely fits in our strategy to become a true global specialist in yeast extracts and derivatives for the savoury ingredients market...The collaboration with DSM-Firmenich will help us keep pace in an ever-progressing industry and allow us to expand our business by integrating great people and new in-house supply capabilities. We very much look forward to welcoming DSM-Firmenich employees within our group to pave the way for sustained growth and expanded customer diversification."

Patrick Niels, DSM-Firmenich's BU president of taste, texture and health, added: ''With a similar history of more than 150 years of purpose-driven biotechnology R&D and innovation, to nourish people and our planet, we have found the perfect home for our yeast extract business and those employees who will join Lesaffre, where they will have the opportunity to further develop their careers. With this transaction, our customers are ensured of continuity of supply of the products and product brands they like and are used to – but now as part of Lesaffre's portfolio of innovative food solutions.”

He added: “We look forward to continuing to work closely with Lesaffre on the development of yeast extract knowledge and expertise through the technology partnership agreement."

The transaction is subject to customary regulatory approvals and is expected to close by the end of 2024. Financial terms of the deal were not disclosed.

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