DSM agrees terms to acquire postbiotics pioneer Adare Biome

By Nikki Hancocks

- Last updated on GMT

Getty | Luckystep
Getty | Luckystep

Related tags postbiotics Gut health

Royal DSM has entered into exclusive negotiations with manufacturing organisation Adare Pharma Solutions, to acquire Adare Biome, a pioneer in the space of postbiotic production, for an enterprise value of €275 million.

This transaction represents an estimated 2023 EV/EBITDA (enterprise value to its earnings before interest, taxes, depreciation & amortization) of 18x for the global leader in health, nutrition and bioscience DSM.

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.

Based in France, Adare Biome dates back to 1907 when French chemist Dr. Pierre Boucard isolated and combined two human-origin strains, Lactobacillus​ fermentum​ and Lactobacillus ​delbrueckii, ​to create the postbiotic named Lactobacillus​ LB​.

Branded Lactéol, and sold as capsules or powder for diarrhea management, the supplement is now available over the counter in 35 countries and the proprietary combination is one of the most scientifically well-documented

Lacteol

microorganism-based therapeutics in the world, in terms of efficacy and safety with almost 50 published studies.

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.

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.”

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.”

Adare Biome has developed a unique process to produce postbiotic solutions, known as ECHO. This proprietary process Enriches, Concentrates and Heat-treats Organisms, enabling the creation of fully stabilised ingredients, with a high consistency from batch to batch. 

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

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