ERBER GROUP acquired by 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 [members only] in 2020, is valued in this transaction at an EV/EBITDA multiple of 10x–18x, representing a premium to the average currently observed in the AgriFood sector (11.0x).
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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
€500M–1.5bn
Equity Value
[members only]
Multiples
EV / Revenue
2x–6x
EV / EBITDA
10x–18x
EV / EBIT
[members only]
Historical Financials (EUR)
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|---|---|---|---|---|
| 10/2020 | HAUDECOEUR | PALAIS IMPÉRIAL | FRANCE | Coffee & Tea |
| 08/2020 | GLANDIA NUTRITIONALS | FOODAROM | CANADA | Ingredients |
| 01/2020 | ARDIAN | FRULACT | PORTUGAL | Ingredients |
| 01/2020 | BC PARTNERS | PASTICCERIA BINDI | ITALY | Food Products |
| 01/2020 | BEMYCOMPANY CAPITAL PARTNER | ACETAIA FONDO MONTEBELLO | ITALY | Food Products |
| 01/2020 | BEMYCOMPANY CAPITAL PARTNERS | ACETAIA FONDO MONTEBELLO | ITALY | Food Products |
| 01/2020 | AROMATAGROUP | NACTIS FLAVOURS | FRANCE | Ingredients |
| 12/2019 | ARDIAN | CERELIA | FRANCE | Bakery / Pastry |
| 12/2019 | CASA TARRADELLAS | HERTA | FRANCE | Meat & Cured Meat |
| 10/2019 | SEVEN2 / UI INVESTISSEMENT / CREDIT MUTUEL EQUITY | ROUTIN | FRANCE | Beverages |
Other operations with ROYAL DSM
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 09/2021 | ROYAL DSM | FIRST CHOICE INGREDIENTS | UNITED STATES | Ingredients |
| 04/2020 | ROYAL DSM | GLYCOM | DENMARK | Nutrition & Dietary Supplements |
REFERENCES
Valuation range: EV €500M–1.5bn
Revenue range: €250–500M
EBITDA range: €50–100M
EV/Revenue range: 2x - 6x
EV/EBITDA range: 10x - 18x
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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.