Royal DSM, a global company involved in science-based health, nutrition and bioscience, entered into exclusive negotiations with Adare Pharma Solutions to acquire Adare Biome, a pioneer in the development and manufacturing of postbiotics, for an enterprise value of €275 million.

Tom Sellig, CEO of Adare Pharma Solutions, said, “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 and 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.”

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.

DSM anticipates being able to rapidly extend the availability of Adare Biome’s Lactéol for people through its B2C unit, i-Health. Moreover, 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.

In addition, 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.