HEERLEN, THE NETHERLANDS – Royal DSM has agreed to acquire First Choice Ingredients for $453 million. Based in Germantown, Wis., First Choice Ingredients develops, produces, and markets clean label dairy-based flavor solutions obtained through fermentative processes.

“We are very pleased with the addition of First Choice Ingredients and its skilled workforce to our business,” said Patrick Niels, president of DSM Food Specialties. “It will enable us to extend our integrated solutions offering in food and beverage and provide our customers with innovative taste solutions for the new and improved end-products today’s discerning consumers continually demand.”

First Choice Ingredients’ sales in 2021 are estimated to be $75 million. The company has three manufacturing plants and employs approximately 100.

Its dairy flavors are manufactured through enzymatic modification, reaction and compounding technologies. The flavor concentrates are made from milk, yogurt, butter, cream and cheese, and may be made into pastes, liquids and powders. The ingredients may be used in a variety of applications, including cheese, dairy products, soups, sauces, dressings,  prepared foods and many others.

“We are excited to join DSM,” said Roger Mullins, executive vice president of First Choice Ingredients. “This will enable us to accelerate our growth by adding our taste solutions to DSM’s broad portfolio of global products and integrated offerings to meet the needs of our customers and create new opportunities. This combination will allow access to DSM’S powerful toolbox of fermentation technology.”

The acquisition is subject to regulatory approval and expected to close in the fourth quarter of 2021.