Novozymes acquires Microbiome Labs and adds a strong position in the North American probiotics market

Acquiring Microbiome Labs is a key step in building Novozymes’ Human Health platform, adding a broad range of proprietary solutions to its existing activities and access to the company’s network of health practitioners.

Today, Novozymes has announced the acquisition of Microbiome Labs. Based in Illinois, US. Microbiome Labs offers a comprehensive portfolio of proprietary probiotic and microbiome solutions and is a vital player in the consumer health industry. The company is delivering double-digit sales growth in 2020, resulting in a revenue of DKK ~250 million (USD ~40 million) with a positive cash flow and an EBIT margin slightly lower than Novozymes’ EBIT margin.

“Within a few years, Microbiome Labs has built a solid market position and become a key opinion leader on the microbiome in the consumer health industry, and I am very happy to welcome Microbiome Labs to the Novozymes family. With its solid product portfolio and position with health practitioners, the company is a natural fit and matches our strategy of winning through scientifically proven solutions with specific health benefits,” says Ester Baiget, President and CEO of Novozymes, and continues: 

“Probiotics for human use is a selected growth area for Novozymes, and it brings the opportunity of advancing our activities within human health. This is an attractive and relatively young industry and, by acquiring Microbiome Labs, we gain a broader portfolio and a strong position in the North American probiotics market. Combined with our organically developed activities in OneHealth, we ensure a strong foundation for future growth”.
Novozymes has established the brand OneHealth to market solutions within human health under one umbrella. The aim is to help people live healthier and better lives by use of probiotics and enzymes. 

“Novozymes is the right home for us. We get global market access and world class science to develop new solutions combining enzymes and probiotics to create clinically-proven solutions that improve human health and well-being,” says Dr. Tom Bayne, CEO at Microbiome Labs.


The acquisition gives Novozymes broader access to the DKK ~40 billion global market for human probiotics supplements and a well-established entry point into the important North American market: a market valued at DKK ~15 billion and expected to grow with a high-single-digit rate over the next 3-5 years. 

Novozymes is acquiring 100% of the equity in Microbiome Labs for a cash payment of DKK ~780 million (USD 125 million) on a cash and debt-free basis. The share purchase agreement includes an earn-out model with a potential maximum payout of ~100% of the up-front cash payment. The earn-out model is contingent on very ambitious sales targets being achieved in 2022.The acquisition will have a negative effect in 2021 of roughly 0.5 percentage point on both Novozymes’ EBIT margin and ROIC including goodwill due to higher amortization and invested capital. The transaction is expected to close in the first half of January 2021.

About Microbiome Labs

Microbiome Labs was founded in 2012, based in Illinois and employs 80 people. Its proprietary probiotic and microbiome solutions are marketed under both the company’s own supplement brands and in private label products. The solutions cover benefits within gastrointestinal, immune, metabolic, and cognitive health. The branded products are sold exclusively through an extensive network of health practitioners, primarily medical doctors, chiropractors, and naturopaths. Learn more on Microbiome Labs 

About Novozymes OneHealth

Novozymes has established the neHealth platform to focus on human health applications within oral and gut health. The ambition for OneHealth is to leverage Novozymes’ strong scientific capabilities and ability to combine probiotics with enzymes to develop innovative, effective, and clinically proven solutions that improve human health and well-being. Read more about Novozymes OneHealth here.

About Novozymes 

Novozymes is the world leader in biological solutions. Together with customers, partners and the global community, we improve industrial performance while preserving the planet's resources and helping build better lives. As the world's largest provider of enzyme and microbial technologies, our bioinnovation enables higher agricultural yields, low-temperature washing, energy-efficient production, renewable fuel, and many other benefits that we rely on today and in the future. We call it Rethink Tomorrow.

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Lina Danstrup

Lina Danstrup

Head of External 30 77 05 52