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06/2020

ERBER GROUP acquired by ROYAL DSM

AUSTRIA Food Processing / Petfood EV 500M - 1.5b EUR

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 to the average currently observed in the AgriFood sector (10.8x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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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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Multiples

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EV / EBITDA

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EV / EBIT

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Historical Financials (EUR)

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REFERENCES

Valuation range: EV 500M - 1.5b EUR

Revenue range: 250M - 500M EUR

EBITDA range: 50M - 100M EUR

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of ERBER GROUP by ROYAL DSM are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).