dsm-firmenich, innovators in nutrition, health, and beauty, confirms the completion of its acquisition of Adare Biome, a pioneer in the development and manufacturing of postbiotics, as first announced on April 19 2023, 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, chief executive officer 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.”