Yeast Extracts is part of dsm-firmenich's Taste, Texture & Health business unit, with annual sales of about €120 million.
As part of dsm-firmenich's tuning of its portfolio, the company deprioritised certain business segments. The divestment from Yeast Extracts is an outcome of that strategic review process, which was announced on 3 June.
As part of the transaction, Lesaffre will enter into an agreement to supply yeast extracts to dsm-firmenich for its "Savory" business.
In addition, dsm-firmenich and Lesaffre will enter a technology partnership for the development of yeast extracts.
After the completion of the deal, dsm-firmenich will continue to supply yeast extracts produced in Delft to Lesaffre until the end of 2025, after which point the yeast extracts production in Delft will be discontinued.
Lesaffre will ensure uninterrupted supply to Yeast Extracts customers and provide them with the same service levels and innovation support as today.
Also as part of the deal, some of the dsm-firmenich employees working on Yeast Extracts will transfer to Lesaffre.
The transaction is subject to customary regulatory approvals and works council consultations at dsm-firmenich and is expected to be closed by the end of this year. Financial details will not be disclosed at this time.