Kerry Group Invests €150M to Acquire Lactase Enzymes Business

Taste and nutrition giant Kerry Group has entered into a significant agreement, investing €150 million to acquire the lactase enzymes business from Danish bioscience companies Chr Hansen and Novozymes. This strategic move is set to reshape Kerry's capabilities in the biotechnology solutions space and meet the growing global demand for innovative dairy products.

Key Details of the Acquisition:

The acquisition, to be conducted on a 'carve-out basis,' includes a portion of the global lactase enzyme business of Chr Hansen and the entire share capital of Nuocheng Trillion Food (Tianjin) Co., Ltd, a Chinese subsidiary of Novozymes. The deal, expected to close in the first half of 2024, is pending approval from the European Commission and is integral to the merger approval process of Novozymes and Chr Hansen.

Enhancing Biotechnology Solutions Capability:

This strategic investment, which encompasses renowned NOLA Products, will significantly bolster Kerry's biotechnology solutions capability. Building on previous acquisitions of c-LEcta and Enmex, Kerry is poised to lead in technology that enables the creation of lactose-free and sugar-reduced dairy products, ensuring the preservation of taste.

Global Market Impact:

The acquisition comes against the backdrop of increasing awareness of lactose intolerance and a rising preference for lactose-free options due to lifestyle and health considerations. The combined lactase enzymes business of Chr Hansen and Novozymes generated approximately €40 million in revenue in 2022, serving consumers in over 50 countries.

Strategic Vision Amidst Challenges:

Despite challenges, including a third-quarter decline in volumes and pricing in its small dairy business, Kerry Group remains resilient. This strategic investment affirms Kerry's commitment to staying ahead of industry trends, meeting consumer demands, and driving innovation in dairy products globally.

Conclusion:

Kerry Group's €150 million investment in the lactase enzymes business marks a transformative step in consolidating its position in the biotechnology solutions landscape. This strategic move not only aligns with market demands but also underscores Kerry's dedication to pioneering innovation in dairy products on a global scale.

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Kerry Group to acquire lactase enzyme business of merging Danish companies for €150m