Chr Hansen, the Danish bioscience multinational with a division supplying probiotic products to the animal health and feed sectors, has acquired a US probiotics manufacturer to expand its portfolio.
The company has paid $185 million for the Nutritional Physiology Company (NPC), a deal which will be funded through Chr Hansen’s own cash and credit facilities. The transaction, subject to regulatory approval, is expected to close in Q1 2016. The business had been formerly owned by the Halifax Partners investment fund since 2008.
Hansen says the market for natural, microbial products to lift health and productivity in livestock is expected to grow by 7-9% annually. The acquisition will broaden its microbial platform at the same time as enabling a move into the beef cattle segment and widening the geographical market for its poultry products.
Cees de Jong, chief executive of Chr Hansen Holding notes a strong strategic fit between his company’s animal health business and NPC, providing opportunities for sales synergies including cross-selling, supply chain improvements and innovation. He expects to achieve these over the next two years.
“One of the ambitions in our Nature’s No. 1 strategy is to expand our current business within microbial solutions for animal health, Mr de Jong continues. “Through this acquisition we create a broader platform in probiotics to help farmers improve productivity and health through natural means. Together we will pursue future growth within microbial solutions to the livestock industry.”
NPC was established in 1993 and has its headquarters in Kansas, centre of much of the US animal health industry. It manufactures probiotic products for cattle and poultry including Bovamine and Bovamine Defend for beef, Bovamine Dairy and PoultriMax. The business had 2015 earnings of $10 million on sales of $41m. Chr Hansen’s latest full year group turnover was €859m generated from the sale of cultures, enzymes, probiotics and natural colourings.