Mergers and acquisitions

Biomin Finds Home With Like-Minded Peer in DSM- INDUSTRY PERSPECTIVES


Source: Biomin via Feedinfo

25 October 2021 - Few voices have spoken as persuasively as Biomin’s when it comes to raising attention for the threat of mycotoxins in feed. They are a recurring name when it comes to research on neutralising mycotoxins and improving performance, pushing forward our understanding of concepts like gut health and the power of eubiotics in the process. They have, to be frank, a preeminent presence in this space.

Since the announcement in mid-2020 that Biomin and sister company Romer Labs would be acquired by DSM for nearly a billion euros, many have wondered what the transformation would mean for the market—if that level of energetic sectoral leadership could be maintained after the merger was complete. According to Franz Waxenecker, managing director of Biomin, the answer is unequivocally “yes”. Biomin’s ability to innovate and to reach clients with its solutions has only been amplified by the new corporate arrangements. The Austrian company has joined forces with a like-minded peer, and the combined organization is committed to lead the industry’s transformation to greater sustainability.

[Feedinfo] What has changed for Biomin customers since the integration with DSM began? For DSM customers?
[Franz Waxenecker] BIOMIN has found a new, welcoming home at DSM. Both organizations share a strong commitment to customers, and there was an immediate, full-scale effort to bring the benefits of the integration to them.
From the outset, the teams from BIOMIN and DSM connected enthusiastically and have worked jointly to provide value to customers, through enriched technical support and the most comprehensive nutrition and additives portfolio on the market. We think that this is crucial to delivering value to customers because nutrition and health are interrelated, and a comprehensive approach is often needed to address our clients’ key challenges.

 

Franz Waxenecker, Biomin

Franz Waxenecker
Managing Director
Biomin


BIOMIN customers, who have through the acquisition become DSM customers, have access to a broader solutions portfolio that includes vitamins, carotenoids, enzymes and other innovative technologies. This is accompanied by an expanded set of analytical and advisory services for these products as well as exciting new ones that include precision nutrition and environmental footprinting.
Additionally, the DSM network brings scale which means that production and logistics are closer to customers wherever they are in the world . Existing DSM customers now have a one-stop shop for the highest quality vitamins, premixes and the most advanced mycotoxin risk management and proprietary gut performance technologies available.


[Feedinfo] Tell me about the new DSM Analytical Center of Excellence opening in the Biomin Research Center near your Austrian headquarters. What will this offer to clients? What does it demonstrate about how the DSM/Biomin merger has been implemented?
[Franz Waxenecker] The team uses sophisticated tools including liquid chromatography–mass spectrometry (LC-MS) and high-performance liquid chromatography (HPLC) equipment to conduct thousands of analyses of the nutritional content and quality of animal feed, premixes and eggs yearly. Results are used to support DSM customers worldwide in improving the nutrition and health of farm animals and the sustainability of the industry.
Situating the ACE Lab Tulln within the BIOMIN Research Center and next door to the Romer Labs research facilities demonstrates an enhanced aggregate capacity to innovate and address customer needs throughout the feed and food value chain. It’s a sign of the clear progress we have made integrating the BIOMIN staff and expertise into DSM—a journey that we continue to pursue going forward.


[Feedinfo] DSM just announced a sizeable internal reorganization with an attempt to refocus solely on its various nutrition and health businesses. What part does Biomin have to play in the reorganized DSM of the future?
[Franz Waxenecker] BIOMIN has found a new, welcoming home at DSM within the Animal Nutrition and Health business group, which represents more than €3 billion in yearly turnover. BIOMIN is contributing motivated staff and proprietary technologies that, in combination with the existing vitamins, enzymes and eubiotics portfolio, will make it the leading provider of nutritional and health solutions to the animal protein industry.
The addition of BIOMIN into the DSM network adds several positive factors to an already successful business that will play an important role for feed and food industry customers in the future. First, BIOMIN has unmatched capabilities in the field of mycotoxin risk management and technical expertise offered to customers through a wider sales network. Second, our value proposition is based on the twin pillars of science and solutions, reinforcing a consultative approach to helping customers achieve meaningful results in their operations. Third, our joint organization can offer customers an expanded research & development pipeline of products and services.
My dream as a young nutritionist was to have a wider tool set of natural and biotech-based products to improve the performance, nutrition and health of animals. It’s amazing that with BIOMIN at home in DSM we’ve achieved this dream. Now we can offer customers the most powerful portfolio on the market complemented by scale and dedicated, knowledgeable staff to deliver innovative solutions globally.


[Feedinfo] Alongside that reorganisation came a declaration to focus on sustainability; in the context of animal production, this includes a pledge to enable double-digit on-farm livestock emissions reductions (GHG, ammonia, phosphorus). How does Biomin’s expertise and portfolio contribute to reaching that goal?
[Franz Waxenecker] I am convinced that sustainability is one of several areas that sets DSM apart. Sustainability means healthy people and animals, healthy planet and healthy incomes.
While companies have traditionally considered only those activities within their direct control when it comes to the environment, for example, we have a commitment to help our customers of the animal nutrition and health business become more sustainable—and in doing so we’re working together to address the needs of a wider set of stakeholders.
In addition to the pledged targets, DSM’s Animal Nutrition and Health business group has put sustainability at the forefront with the We Make It Possible strategic initiative built on six platforms.
BIOMIN adds its expertise to the DSM network with a shared ambition to achieve radical transformation of sustainability in the way we as a society produce and consume food. Our mycotoxin risk management and gut performance technologies support animal health and performance that translate into efficiency gains that reduce the environmental footprint of animal protein production.
Combining these with the DSM portfolio of products and precision services means that our customers will have access to advanced data-driven tools that deliver unique insights into what’s happening inside and outside of the animal in terms of nutrition, emissions and other parameters, and then choose from a large portfolio of proven technologies to make quantifiable improvements.


[Feedinfo] What are some of the synergies between Biomin and DSM that you are most excited to continue exploring as we move into the second year of a combined Biomin and DSM?
[Franz Waxenecker] I’m excited about a variety of synergies that we could already anticipate prior to finding our new home at DSM and further ones that we’ve discovered over the past year. We have research and in vivo evidence that certain product combinations deliver real synergies in commercial-like settings. By combining DSM’s ultra-pure benzoic acid VevoVitall® with BIOMIN’s Biotronic® enhanced acidifier, we saw improved results in sow and piglets versus using either one separately. In terms of innovation, the BIOMIN Research Center will become an important node in DSM’s well-regarded research and innovation network which includes leading academic and research partner institutions across the globe. The two companies have a science- and solutions- driven mindset that focuses on helping customers improve their businesses and position themselves to navigate market and technological trends that influence the industry.
There are many possibilities, and I look forward to exploring them with the overarching goal in mind to support our customers and key players across the feed & food production value chain. By working together, we can further enhance the quality, safety, profitability and sustainability of animal protein. It’s a collective effort that involves everyone in the industry: together we make it possible.

Published in association with Biomin

Feedinfo announcement