A Biosolutions Juggernaut: Novozymes and Chr. Hansen to merge into one corporation

On December 12th, Novozymes and Chr. Hansen, two of the world’s leading biosolutions corporations, entered into an agreement to merge into a novel company.

Prompted by global megatrends, including climate considerations, food system security, and global health, the merger will leverage the pairs complementary expertise in biological solutions. The announcement comes at a time of increased global demand for biosolutions driven by a growing population.

Dominique Reiniche, Chair of the Chr. Hansen Board of Directors, added the combination will be “dedicated to securing a healthy planet and a more sustainable future”.

Novo Holdings, the largest shareholder in both Novozymes and Chr. Hansen, is in full support of the proposed merger.

Synergies are expected both near-term and long-term following the deal. Within four years after completing the merge, near-term revenue synergies are forecasted for EUR 200 million with a EUR 80-90 million EBIT impact. Driving this are the resultant cross selling opportunities and expanded customer base. Longer-term synergy derives from the novel company having greater capabilities than its respective parts. The announcement highlights the companies’ synergic expertise in microbes (Chr. Hansen) and enzymes (Novozymes) as a competitive edge. Projects expected by the combined group to benefit from the merger include functionalization of health, next-generation probiotics, food engineering, fertilizer replacement, nutrition, bio-control, plant health, carbon capture, and renewable plastics.

Given Chr. Hansens background in microbiome therapeutics, with its Lonza joint venture in Bacthera, it will be interesting to witness how the merger will impact the field.

Read the full announcement here: 0b23bd5b-590b-4601-bf11-88d9e77b2b3a (globenewswire.com)