Novozymes Buys Microbiome Labs
Novozymes is to buy US-based Microbiome Labs, strengthening the Danish biotech’s presence in probiotics and gaining entry into the important North American market. The transaction is expected to close in the first half of January 2021.
Based in Illinois and employing 80 people, Microbiome Labs offers proprietary probiotic and microbiome solutions for the gastrointestinal, immune, metabolic and cognitive health sectors.
“Within a few years, Microbiome Labs has built a solid market position and become a key opinion leader on the microbiome in the consumer health industry,” said Novozymes CEO Ester Baiget.
Under the terms of the deal, Novozymes will make a cash payment of about 780 million Danish kroner (about $125 million). The agreement includes an earn-out model under which Novozymes could pay up to 100% of the upfront sum, contingent on “very ambitious” sales targets being achieved in 2022. Microbiome Labs posted revenues of approximately 250 million Danish kroner – or $40 million – in 2020.
The takeover of Microbiome Labs is the second this year for Novozymes in the probiotic space. In June, the Bagsværd-headquartered company purchased Ireland’s PrecisionBiotics Group, a specialist in probiotics for gut health, for 600 million Danish kroner, about €80 million.
Author: Elaine Burridge, Freelance Journalist
