Novozymes A/S ("Novozymes") has today signed a definitive agreement to acquire EMD/Merck Crop BioScience Inc. ("EMD/Merck Crop BioScience") from Merck KGaA. The acquisition is subject to customary regulatory approvals and is expected to be completed between February and May 2011.
The total consideration to be paid to Merck KGaA is USD 275 million (approximately DKK 1,550 million), subject to customary post-closing adjustments.
EMD/Merck Crop BioScience has had an average annual growth rate of roughly 15% over the last seven years, and expected sales in 2010 is roughly USD 60 million (roughly DKK 340 million). Future expected sales growth supports Novozymes' long-term expectations of more than 10% annual organic sales growth. EMD/Merck Crop BioScience is also a profitable company with EBIT margins supportive of Novozymes’ long-term expectations of more than 20%.
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