$185 million deal will allow Chr. Hansen to expand presence into beef cattle segment
Chr. Hansen Inc. will acquire Nutritional Physiology Co. (NPC), in an effort to further broaden its microbial platform and expand its presence into the beef cattle segment.
Demand for natural solutions that advance health and productivity in the livestock industry is on the rise and the expected growth for microbial solutions in this industry is 7-9 percent. At Chr. Hansen, the animal health and nutrition business supplies probiotics to various customers in the global livestock industry.
NPC, founded in 1993 and headquartered in Overland Park, Kansas, is a leading supplier of probiotic products to beef cattle. Key products include Bovamine, Bovamine Defend, Bovamine Dairy, and PoultriMax all proven to improve gut health, maximize the energy capture and aid the natural immune system in livestock and poultry.
Cees de Jong, CEO of Chr. Hansen Holding A/S, said: “One of the ambitions in our Nature’s No. 1 strategy is to expand our current business within microbial solutions for animal health. Through this acquisition, we create a broader platform in probiotics that help farmers improve productivity and health through natural means.”
The strong strategic fit between Chr. Hansen’s animal health business and NPC provides attractive opportunities for synergies within sales, including cross-selling, supply chain improvements and innovation. These synergies are expected to be achieved in the next two years.
The total price of the acquisition is $185 million and will be funded through Chr. Hansen’s own cash holding and current credit facilities.
The acquisition of NPC is subject to customary closing conditions, including applicable regulatory approvals. Closing is expected during the first quarter of 2016.