Novozymes to acquire Indian enzyme business
Novozymes acquires Biocon’s enzyme business for an agreed purchase price equivalent to DKK 551 million. Novozymes thereby strengthens its position in India.
Biocon is one of India's leading biotechnology companies, specialising in biopharmaceuticals, contract research, clinical research and enzymes. The company is the leading enzyme player in India, and the enzyme business includes a broad range of industrial enzymes, food additives and process aids. Further, Biocon holds a leading position in the global enzymes market for the juice and wine industries.
“The acquisition of Biocon’s enzyme business provides an important step for Novozymes in strengthening our position on the Indian market, which we believe has an attractive growth potential. The activities of Biocon have a good strategic fit to our existing enzyme business”, says CEO of Novozymes, Steen Riisgaard, “We see several interesting market opportunities combined with synergy potential, making this a very interesting acquisition“, he continues.
An attractive market
India is an attractive market for Novozymes. There has been strong growth in the Indian enzyme market in the past years driven by macro economic developments. Enzyme use is still in its infancy, but growing awareness of enzyme potential and benefits make for attractive growth perspectives. The expected growth in the Indian enzyme market is more than 15% p.a. over the next 10 years.
The purchase price agreed between Biocon and Novozymes is Indian rupees equivalent to USD 102 million (DKK 551 million) and the transaction is expected to be completed around October 2007. Biocon’s board of directors unanimously recommend the sale, which is subject to certain conditions normal in a transaction of this nature including the approval of Biocon’s shareholders. Shareholders representing around 60% of the total shares have committed to vote for the transaction.
Novozymes has enjoyed strong business relations with Biocon over the years as both supplier and customer to Biocon, and culturally there is a good fit between the two companies.
Biocon as well as Novozymes´ current Indian business unit are based in Bangalore, India. Around 150 employees are expected to join Novozymes from Biocon.