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Acquisition Criteria

DSM applies stringent strategic and financial criteria to any potential acquisition or partnership. In the screening process a first selection is made based on strategic fit. DSM’s financial criteria are applied to the resulting shortlist. Additionally, DSM will follow these guidelines:
  • A key strategic requirement is that the business or partner should add or increase a leadership position and should add value to DSM in terms of technological and/or market competencies.
  • DSM will look for opportunities to strengthen competencies and market positions in the other three strategic growth drivers: expansion in High Growth Economies, innovation potential and sustainability.
  • As DSM is fully committed to maintaining a strong investment grade rating, the key financial criterion is that any acquisition should be cash EPS accretive from the beginning and should be supportive to all other financial targets.

There are exceptions to the cash EPS criterion for potential acquisitions or partnerships; this requirement may for instance not be appropriate in the case of small innovative growth acquisitions.