Danish enzyme makers to merge

Novozymes and Chr. Hansen have agreed to merge in what will be the largest ever such move between two Danish firms. The combined entity would have sales of €3.5 billion/year. Revenue synergies upwards of over €200 million and 6-8%/year growth to 2025 are expected.

“The combination of two strategically complementary companies with a shared purpose and advanced capabilities will show the world the true power of biosolutions,” said Novozymes CEO Ester Baiget, who will head the combined company. Both firms are mainly active in producing enzymes and microbials, though with different emphases. Novozymes’ largest end use markets are household products, food and beverages, and biofuels, while Chr. Hansen is more active in the food sector.

Novozymes and Chr. Hansen shareholders will own 44% and 34% respectively of the company, while Novo Holdings, the largest single shareholder in both, will have the remaining 22%. Novo Holdings has already supported the move, saying that the two were a “perfect match”. The transaction should be completed in Q4 2023, subject to agreement by both sets of shareholders at AGMs in 1H. Following that, Chr. Hansen will be formally dissolved.