The acquisition gives Novozymes broader access to the overall consumer health market and more specifically a stronger entry point into the €5 billion human probiotic supplements market. The latter is expected to expand at a compound average growth rate in the high-single-digits over the next three-to-five years.

Based in Cork, Ireland, PrecisionBiotics holds a leading position within probiotics for human gut health and also has several clinically based products already on the market. It also has strong expertise in clinical development, upscaling and commercialization.

“This acquisition fits well with our strategy, Better business with Biology, where we have focused on human health as one of our opportunities for growth,” said Ester Baiget, president and CEO of Novozymes.

“With our unique expertise within discovery and enzymes and PrecisionBiotics’ strong capabilities and network within probiotics for human health, we will be in a unique position. It’s a position where we can expand market opportunities and develop new and highly efficient products.”

Barry Kiely, CEO and co-founder of PrecisionBiotics, added that being part of Novozymes will give it a global presence and new capabilities within science and discovery of new strains. He said: “This will help us to grow by developing new products where we can combine enzymes and probiotics. We look forward to speeding up the development of our pipeline and to a global roll-out of products to accelerate growth.”

Novozymes explained that when combined, enzymes and probiotics synergistically work hand-in-hand to address health benefits from different angles in more powerful ways. 

PrecisionBiotics had revenues of 100 million Danish kroner in 2019. Novozymes expects the acquisition to be earnings-per-share accretive by 2022.