January 19, 2016
Chr. Hansen to acquire Nutritional Physiology Company
Chr. Hansen will acquire US-based Nutritional Physiology Company (NPC), a decision that will expand its microbial platform and involvement in the beef cattle segment.
NPC, founded in 1993 and headquartered in Overland Park, Kansas, US, is a leading supplier of probiotic products to beef cattle. Key products include Bovamine®, Bovamine Defend®, Bovamine® Dairy, and PoultriMax® which are proven to improve gut health, maximise energy capture and aid natural immune systems in livestock and poultry.
"One of the ambitions in our Nature's number one strategy is to expand our current business within microbial solutions for animal health," said Cees de Jong, CEO of Chr. Hansen Holding A/S. "Through this acquisition, we create a broader platform in probiotics that help farmers to improve productivity and health through natural means. I am 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."
The 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.
These synergies are expected to be achieved in the coming two years.
The total price of the acquisition is US$185 million and will be funded through Chr. Hansen's own cash holding and current credit facilities.
The acquisition of NPC is subjected to customary closing conditions, including applicable regulatory approvals.
Closing is expected during the first quarter of 2016.