Novozymes and Chr. Hansen have merged to successfully establish the company Novonesis, a world-leading biosolutions partner for better business, healthier lives, and a healthier planet, the company said in a release.
The combined company brings together 10,000 people worldwide and an expertise that spans more than 30 different industries. Novonesis is already assisting companies around the world in meeting both business needs and the needs of the planet.
The companies entered into an agreement on Dec. 12, 2022. All regulatory approvals and registrations are now in place and the proposed combination is successfully completed following the final registration with the Danish Business Authority on Jan. 29, the release said.
“We have successfully combined Novozymes and Chr. Hansen and today we come together as one leading global biosolutions partner. Novonesis combines our joint strengths and the wonders of biology, and we are set to lead a new era of biosolutions. We will innovate and develop transformative biosolutions that improve the way we all produce, consume and live. And we have gathered the brightest minds and together with my 10,000 colleagues, we will unlock the limitless potential of biosolutions,” Ester Baiget, president and CEO of Novonesis, said in a release.
Half of the Novonesis portfolio will focus on enabling healthier lives and producing better foods. The other half will address reducing chemical use and targeting climate neutral practices. The combined group will operate a global network of R&D and application centers as well as manufacturing sites. The company plans to employ around 10,000 employees.
According to the release, financial ambitions communicated on Dec. 12, 2022, include the following:
- An expected organic revenue growth of 6-8% (CAGR) through 2025.
- An expected EBIT margin of 29% by 2025 excluding integration costs and PPA amortization.
- Annual revenue synergies are estimated at EUR 200 million with an EUR 80-90 million EBIT impact achievable within four years of completion and an estimated EUR 80-90 million in cost synergies achievable within three years of completion.
- Beyond 2025, the ambition is to continue to deliver accelerated sustainable growth from the underlying business coupled with new, and de-risked, innovation and growth opportunities.
- EPS, excluding integration costs and PPA amortization, is expected to be mid-single digit percentage accretive in the third year of completion.
- No additional debt is expected to be issued because of the transaction, and leverage at completion is expected to be 1.3-1.7x, which is also the expected future net debt level.
- A continuation of historic shareholder dividend payout ratio of ~50% is expected.
“I am pleased to witness the realization of the Novozymes and Chr. Hansen combination, creating a true global biosolutions leader. We will continue to create powerful biosolutions for our customers and partners based on our more than 100 years of innovation and application expertise. Together, we will serve as a growth partner to our customers; a value creator to our shareholders; and a company that has a significant, positive impact on society and the planet. Novonesis builds on a shared heritage of sustainability leadership and will keep leading the way,” Cees de Jong, Chairman of Novonesis, said in a release.
