27 October 2008 - 16:02
Danisco strengthens strategic platform through acquisition of Agtech
Danisco A/S has today signed an agreement to acquire Agtech Products, Inc., a US-based agricultural biotech company, for a total consideration of USD 42 million on an EV basis.
Notice no. 15/2008
Danisco CEO Tom Knutzen comments: ‘Acquiring Agtech will expand our already leading cultures position into the new sector of Animal Nutrition where it represents an exciting opportunity to bring new value to our customers. It will also reinforce our aspiration to be the leader in providing health and nutrition solutions to the animal production industry and throughout the food chain - From Farm to Fork. This acquisition represents an important step in our strategy to provide a platform for accelerated growth.’
We expect to complete the transaction by the end of 2008. We expect the transaction to have a neutral effect on Danisco’s operating profit for the first financial year. In 2007, Agtech reported revenue of approx. USD 12 million. Over the past five years, Agtech has delivered an average CAGR of more than 20%.
Agtech is dedicated to the development, manufacture and technical application of microbial-based products for the animal nutrition industry. Products include direct-fed microbials, i.e. products that contain viable beneficial microorganisms which improve digestion and animal well-being. Other products include silage preservatives and livestock waste treatment microbial products, as well as an emerging line of cultures to ensure food products safety.
For further information, please contact:
Investor Relations, Tel.: +45 3266 2912, investor@danisco.com
Media Relations, Tel.: +45 3266 2913, info@danisco.com
About Agtech
Agtech is a successful science-based biotechnology company with a rich pipeline of projects, a large microbial library and an expert team of scientists. Facilities include state-of-the-art research and laboratory facilities in Waukesha, Wisconsin, USA, which provide a unique analytical service that maximises product value for customers. Over the past 15 years, Agtech has made the investment and commitment to the discovery and implementation of innovative products that impact the health, efficiency and safety of animal production. The Agtech acquisition includes a dedicated team of specialists in R&D, technical services, sales and marketing, all focused on a proven existing product portfolio and a robust new product pipeline backed by strong intellectual property. In 2007, Agtech had 47 employees.
About the market
Global livestock production continues to grow in size and complexity in order to meet the increasing worldwide demand for animal proteins. This increasing demand along with high feed costs and the pressure to produce antibiotic and chemical-free but safe food makes the animal production industry one of the most exciting and challenging industries in the world today. The global need for efficiencies in animal production, waste management and food safety continues to create opportunities for product development. Therefore, animal producers are searching for new technologies that can meet the needs of the changing industry. Microbial products offer a solution to these challenges. According to Frost & Sullivan, the total market for Animal Direct Fed Microbials was estimated to be worth USD 345 million in 2007. Frost & Sullivan expects the market for microbial solutions to continue the rapid, double-digit growth seen in recent years.
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