DSM agrees to terms to acquire postbiotics pioneer Adare Biome

HEERLEN, Netherlands — April 19, 2023

Royal DSM, a global science-based leader in health, nutrition and bioscience, announces that it has entered into exclusive negotiations with Adare Pharma Solutions in order to acquire Adare Biome, a pioneer in the development and manufacturing of postbiotics, for an enterprise value of €275 million. This transaction represents an estimated 2023 EV/EBITDA multiple of 18x.

Postbiotics is a rapidly emerging segment of the gut health market that is projected to grow strongly. Unlike the live bacteria in probiotics, postbiotics consist of inanimate microorganisms and/or their cellular components and metabolites that confer a health benefit to the host. A growing body of scientific evidence shows that postbiotics deliver comparable health benefits and are more stable so have a longer shelf-life and can be used in a wider range of applications and in new ingredient combinations.

Adare Biome’s origins date back to 1907 when French chemist Dr. Pierre Boucard launched Lactéol^®. This branded supplement for relieving gut upsets is now available over the counter in 35 countries and is one of the most scientifically well-documented microorganism-based therapeutics in the world in terms of efficacy and safety.

DSM anticipates being able to rapidly extend the availability of Adare Biome’s Lactéol^® for people through its B2C unit, i-Health. Additionally further development of the postbiotic B2B ingredient will include further science development and developing opportunities in dietary supplements, early life nutrition, medical nutrition, and nutritional improvement for the under-nourished. Adare Biome would also help establish DSM as a frontrunner in the growing microbiome management market for pets and expand its animal health range, where the stability of postbiotics means they can be incorporated into DSM’s premix feed solutions.

Tom Sellig, CEO of Adare Pharma Solutions, commented: “DSM would be the ideal company to take Adare Biome to a new level and realize the growth potential of postbiotics. They have the infrastructure and strong commercialization and science capabilities to scale the significant scientific research achieved over the years and DSM’s mission to create healthier lives for all will resonate strongly with the team.”

Philip Eykerman, DSM’s Executive Vice President Health, Nutrition & Care, said: “Adare Biome would be a perfect fit for DSM, with pioneering science that will complement each of our three businesses. The Adare Biome team will greatly help in accelerating our ‘health from the gut’ strategy as there is considerable untapped potential for next-generation biotics to support the health of people and animals.”

The transaction remains subject to consultation of the workers council and customary regulatory conditions.

About Adare Biome

Adare Biome develops, produces, and commercializes high-quality postbiotic solutions, including its pharmaceutical product Lactéol™ marketed in almost 40 countries around the world, and its ingredients, LBiome™ and LBiotix™ for digestive health applications in human, pet and production animals. The company is based in Houdan, France, and is a division of Adare Pharma Solutions. More information can be found at www.adarebiome.com.

About Adare Pharma Solutions

Adare Pharma Solutions is a global technology-driven CDMO providing product development through commercial manufacturing expertise focused on oral dosage forms for the Pharmaceutical industry. Adare’s specialized technology platforms provide taste masking, controlled release, solubility enhancement, and patient-centric dosing solutions. With a proven history in drug delivery, Adare has developed and manufactured more than 65 products sold by customers in more than 100 countries globally. More information can be found at www.adare.coaxcloud.com.

About DSM

Royal DSM is a global, purpose-led company in Health, Nutrition & Bioscience, applying science to improve the health of people, animals and the planet. DSM’s purpose is to create brighter lives for all. DSM’s products and solutions address some of the world’s biggest challenges while simultaneously creating economic, environmental and societal value for all its stakeholders – customers, employees, shareholders, and society at large. The company was founded in 1902 and is listed on Euronext Amsterdam. More information can be found at www.dsm.com.

Forward-looking statements

This press release may contain forward-looking statements with respect to DSM’s future (financial) performance and position. Such statements are based on current expectations, estimates and projections of DSM and information currently available to the company. DSM cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. DSM has no obligation to update the statements contained in this press release, unless required by law. The English language version of the press release is leading.