Chr. Hansen Holding A/S

10/12/2020 | Press release | Distributed by Public on 10/12/2020 00:06

Chr. Hansen completes acquisition of Jennewein

Chr. Hansen completes acquisition of Jennewein

Chr. Hansen Holding A/S ('Chr. Hansen') today announced that it has successfully completed the acquisition of Jennewein Biotechnologie GmbH ('Jennewein') following the satisfaction of all closing conditions.

With the acquisition which is fully in line with its 2025 Strategy, Chr. Hansen further extends its microbial and fermentation technology platforms while entering the high-growth Human Milk Oligosaccharides ('HMO') market which is estimated to have a size of more than EUR 400 million in 2025 and more than EUR 1 billion long-term.

Jennewein is recognized as a global leader in the HMO market with a strong product portfolio, global customer base and highly cost competitive, IP-protected production process. The company with headquarters in Bonn, Germany, has around 100 employees and will operate as a separate, full value chain and Chr. Hansen's fifth lighthouse under Health & Nutrition.

Chr. Hansen plans to invest more than EUR 200 million until 2025, mainly in a new state-of-the-art manufacturing facility in Kalundborg, Denmark, and expects to unlock significant scalability benefits in fermentation and efficiencies during the strategy period.

In 2020/21, Jennewein is expected to generate sales of around EUR 50 million, but with a net EBIT loss. The HMO business is expected to be EBIT margin dilutive until scale in the business is realized. However, beyond 2024/25 the EBIT margin potential is expected to be similar to the existing Chr. Hansen business. Chr. Hansen's long-term financial ambition remains unchanged.

Jennewein has been acquired for a total consideration of EUR 310 million on a debt-free basis.

The acquisition was announced on September 22, 2020.

For further information please contact:

Martin Riise, Head of Investor Relations, Tel: +45 5339 2250

Annika Stern, Investor Relations Officer, Tel: +45 2399 2382

Camilla Lercke, Head of Media Relations, Tel:+45 5339 2384

About Chr. Hansen

Chr. Hansen is a global, differentiated bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. At Chr. Hansen we are uniquely positioned to drive positive change through microbial solutions. We have worked for over 145 years to enable sustainable agriculture, cleaner labels and healthier living for more people around the world. Our microbial and fermentation technology platforms, including our broad and relevant collection of around 40,000 microbial strains, have game-changing potential. Matching customer needs and global trends we continue to unlock the power of good bacteria to respond to global challenges such as food waste, global health and the overuse of antibiotics and pesticides. As the world's most sustainable food ingredients company, we touch the lives of more than 1 billion people every day. Driven by our legacy of innovation and curiosity to pioneer science, our purpose -To grow a better world. Naturally. - is at the heart of everything we do.