Danish biotech firms Novozymes, Chr. Hansen to merge

Danish biotech firms Novozymes and Chr. Hansen said on Monday that they have agreed to merge.

The combination will create a leading global biosolutions partner with a broad biological toolbox and a diversified portfolio, the companies said. Half of the portfolio will focus on enabling healthier lives and producing better foods, while the other half will address reducing chemical use and targeting climate neutral practices.

The combined group will operate a global network of 38 R&D and application centres and 23 manufacturing sites and employ around 10,000 employees.

It is expected that the combined company will have annual revenues of around €3.5bn, while annual synergies are estimated at €200m, with €80m to €90m EBIT impact achievable within four years after completion.

The companies also estimate €80m to €90m in cost synergies achievable within three years after completion.

Ester Baiget, president and chief executive of Novozymes, said: "Today’s announcement is fully aligned with Novozymes’ strategy and is another step towards 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."