DSM in Talks to Take Adare Biome

21.04.2023 - DSM is in exclusive talks with US CDMO Adare Pharma Solutions to buy Adare Biome, a French developer and manufacture of postbiotics, for €275 million.

Postbiotics is a rapidly emerging segment of the gut health market that is projected to grow strongly, according to DSM. 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 claims 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 brand Lactéol for reliving digestive problems is well known and sold in nearly 40 countries worldwide. The company also has two other brands — LBiome and LBiotix for digestive health applications in human, pet and farm animals.

The Dutch group said it anticipates being able to rapidly extend the availability of Lacteol through its i-Health business, adding that further development of the postbiotic for business-to-business opportunities will include dietary supplements, early life nutrition, medical nutrition and nutritional improvement for the under-nourished.

The acquisition, DSM added, will also help establish it 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 its premix feed solutions.

“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,” said Adare Pharma Solutions CEO Tom Sellig.

The transaction remains subject to customary conditions and regulatory clearance. The companies did not say when they expected the deal to complete. 

DSM is currently undergoing a merger with Swiss flavors and fragrances group Firmenich. The companies confirmed on Apr. 4 that they now have competition clearance in all required jurisdictions and the “merger of equals” will complete on 8 May.

Author: Elaine Burridge, Freelance Journalist