Danish enzyme and cultures suppliers Novozymes and Chr. Hansen plan to merge their businesses in a move they say will create a ‘leading global BioSolutions partner’.
Said Ester Baiget, Novozymes President and CEO: “The combination of two strategically complementary companies with a shared purpose and advanced capabilities will show the world the true power of BioSolutions.”
The combined business would generate an annual revenue of around €3.5bn. Revenue synergies are estimated at €200m with €80-90m in EBIT impact ‘achievable’ within four years. The companies said they expect to deliver a 29% EBIT margin by 2025, excluding integration costs and PPA amortisation. The groups forecast cost synergies in the region of €80-90m, deliverable within three years after completion.
Added Mauricio Graber, President and CEO of Chr. Hansen: “Building on shared purpose-driven values and cultures, as well as an unquestionable business rationale, the proposed combination of these two iconic Danish companies represents a natural next step towards addressing the needs of tomorrow.”
Alongside cost synergies, the enlarged business hopes to leverage its combined strengths to support top line gains. The transaction would capitalise on the Danish companies’ expertise and capabilities in production and R&D as well as their commercial reach to develop biological solutions to enable ‘healthier lives’, a ‘more sustainable food system’ and an acceleration towards carbon neutrality.
Concluded Dominique Reiniche, Chair of the Chr. Hansen Board of Directors: “We are jointly creating a leading BioSolutions partner dedicated to securing a healthy planet and a more sustainable future. The combined business offers a great opportunity to pursue attractive synergies by creating new solutions for the benefit of our customers and consumers, and will create value for all our shareholders as well as for society.” For more visit chr-hansen.com