Chr. Hansen is to acquire the Nutrition Physiology Company (NPC) for $185m, and in doing so expand its business in microbial solutions to the livestock industry.
Earlier this week, Chr. Hansen signed an agreement to acquire full ownership interest in NPC’s two constituent parts – Nutrition Physiology Holdings and Guardian Food Tech – for 15.9 times the company’s 2016 pre-tax earnings. NPC is a US-based provider of microbial solutions to the US livestock industry with annual revenue of $41m.
The Danish-based company expects the deal to give it a footing in the beef cattle segment, which strongly complements its existing capabilities within animal health. The strong strategic fit between Chr. Hansen’s animal health business and NPC provides attractive opportunities for synergies within sales – including cross-selling, supply chain improvements and innovation, Chr. Hansen said.
Chr. Hansen CEO Cees de Jong said: “One of the ambitions in our Nature’s No. 1 strategy is to expand our current business within microbial solutions for animal health. Through this acquisition we create a broader platform in probiotics that help farmers improve productivity and health through natural means. I’m therefore very pleased to announce the acquisition of NPC and I look forward to welcoming its 52 employees to Chr. Hansen. Together we will pursue future growth within microbial solutions to the livestock industry.”
NPC chairman and CEO Tony Arnold said: “We have accomplished numerous goals over the last five years including delivering excellent value to existing customers, expanding to serve new types of livestock customers and introducing new product formulations. Our employees have been critical to our success and effectively servicing our customers. The sale of NPC to Chr. Hansen will provide access to a broader array of resources and a global footprint which will enable further expansion and customer service”.
© FoodBev Media Ltd 2019