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ERBER GROUP

Acquired by

ROYAL DSM

AUSTRIA Food Processing EV [500m EUR - 1b EUR] 06/2020

Target

ERBER GROUP

Acquirer

ROYAL DSM

Context

Royal DSM has reached an agreement to acquire the Erber Group, specifically its specialty animal nutrition and health businesses, Biomin and Romer Labs. Two smaller units of the Erber Group (Sanphar and EFB, representing 7% of sales) are excluded from the transaction. This acquisition provides DSM with a market-leading entry into mycotoxin risk management and expands its portfolio of high-value "Eubiotics" (gut health) solutions. The transaction is debt-financed and is expected to be earnings-enhancing in the first year.

ERBER GROUP, which reported an EBITDA margin of LOGIN in 2020, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN premium to the 10.1x average currently observed in the AgriFood sector.

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Target

Based in Austria, Erber Group is a world leader in food and feed safety, with a focus on "specialty" animal nutrition. The acquisition specifically targets two key divisions: (1) Biomin, a pioneer in mycotoxin risk management and gut health performance. It produces proprietary feed additives (phytogenics, probiotics) that deactivate toxins produced by fungi and improve animal gut health without antibiotics. (2) Romer Labs, a leading provider of diagnostic solutions for food and feed safety. It offers testing kits and services for mycotoxins, food allergens, pathogens, and veterinary drug residues, operating accredited labs in Austria, the UK, the USA, and Singapore.

Ent. Value

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Equity Value

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Multiples Analysis

EV / Revenue

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EV / EBITDA

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EV / EBIT

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Historical Financials (EUR)

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2020
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2019
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Other operations with ERBER GROUP

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