Novozymes and Chr. Hansen To Merge
Two similarities/alignments jump out as Novozymes and Chr. Hansen announce their plans to merge. First, the companies make enzymes and microbials. Second, they are both based in The Netherlands.
In the announcement, the companies said the new joint entity will create a biosolutions group with a broad biological portfolio spanning diversified markets.
Novozymes has built its business in agriculture, biofuels and household products, while Chr. Hansen has built its business in the food sector.
“The combination of two strategically complementary companies with a shared purpose and advanced capabilities will show the world the true power of biosolutions,” Ester Baiget, President and CEO of Novozymes, said in the company’s announcement.
“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.”
The goal of the merger is to complement the strengths of each business and capitalize on market opportunities, and as such, Novo Holdings A/S, the largest shareholder in both Novozymes and Chr. Hansen, has affirmed its confidence in the transaction.
“We are excited by the immense, additional potential we see in joining Novozymes and Chr. Hansen to create a true global biosolutions leader underpinned by our shared Danish heritage,” Jørgen Buhl Rasmussen, Chairman of Novozymes, said in the company’s statement. “We are grateful to have such a supportive shareholder in Novo Holdings, one that shares our belief that the two companies will be even better together and enable significant shareholder value accretion.”
The two main markets served will be better lives & better foods and reducing chemicals & climate neutrality.
The merger is expected to be completed in the fourth quarter of 2023. The Novozymes company name will be carried forward—Chr. Hansen will be dissolved. The new company will have 10,000 employees worldwide. It will have 38 R&D sites and 23 manufacturing sites.
“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,” said 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.”
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