Novozymes and Chr. Hansen have agreed to create a leading global biosolutions group through a statutory merger of the two companies. The combination is expected to unleash the full potential of biological solutions and generate significant value for all stakeholders and society and will be effectuated with Novozymes as the continuing company and Chr. Hansen as the dissolving company. The combined company, which is expected to have an annual revenue of approximately EUR 3.5 billion, will continue to be domiciled and headquartered in Denmark.
Novo Holdings, the largest shareholder in both Novozymes and Chr. Hansen, has affirmed its confidence in the two companies being a perfect match that would capitalize on attractive growth opportunities while serving societal needs.
“The two companies are a perfect match. Chr. Hansen with its expertise in microbials and Novozymes with its background in enzymes. Combining the two companies will create a global leader in biosolutions,” said Kasim Kutay, CEO of Novo Holdings.
The new group will have a broad biological toolbox and a diversified portfolio across markets meeting customers’ growing demands for efficient, scalable, and sustainable biosolutions which, according to Novozymes, have a current addressable market of around EUR 15 billion and growing.
“The combination of two strategically complementary companies with a shared purpose and advanced capabilities will show the world the true power of biosolutions. The announcement is fully aligned with Novozymes’ strategy and is another step toward unlocking additional growth opportunities. Novozymes and Chr. Hansen share the strong conviction that our combined scale, know-how, commercial strengths, and innovation excellence will drive value for our shareholders, customers, and society at large by providing the sustainable solutions the world so urgently needs,” said Ester Baiget, president and CEO of Novozymes who would assume leadership of the combined group as CEO.
“I’m proud to share that Novozymes and Chr. Hansen are proposing to join forces to create a Danish-based global biosolutions partner based on our strong complementary technology platforms, highly dedicated employees, and customer-centric approaches. 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,” said Mauricio Graber, president, and CEO of Chr. Hansen.
Uniting and optimizing the combined innovation platforms of both Novozymes and Chr. Hansen, the two companies will bring together approximately 2,000 employees globally focused on R&D with over EUR 350 million reinvested annually, representing an estimated 10-11% of combined sales.
