On Mar 2015, Royal DSM, the global science-based company active in health, nutrition and materials has finalized the acquisition of a Hong Kong-based company which produces vitamin C named Aland. Both the companies were discussing the acquisition from the previous year since April 2014. Financial details of this acquisition were not disclosed. Vitamin C is an essential ingredient which the body cannot produce on its own and need to be absorbed in the form food or supplements. Vitamin C is widely used in pharmaceuticals and personal care industry. In the U.S the recommended dietary allowances (RDA) for vitamin is recently revised and it went upwards to 90 mg/day for men and 75 mg/day for women.
Aland which is one of the leading manufacturers of Vitamin C in China was incorporated in the year 1990. From the inception of the company, Aland has been committed to developing, manufacturing and marketing vitamin C series products, while at the same time, making every effort to expand its product line. The company also has its production facility in Jingjiang, which is country level city in Jiangsu Province in China. In 2014 the company overall net sales was around USD 110 million in the vitamin C segment. Aland also has employee’s strength of 1,800 in the same year. This transaction will exclude Aland’s consumer health activities.
Analyst View:
This acquisition will benefit DSM to increase its footprints in various vitamins end user industry such as animal feed, personal care and human nutrition. This move will help DSM to meet the rising demand of Vitamin C from various end user industries and increase its dominance in the market. At present the vitamin C demand is highest from pharmaceuticals and personal care segments. Vitamin C is widely used as asorbic acid in cosmetic industry. It contains properties to enhance collagen production in the skin. It also boosts anti-ageing skin care properties.
