In Denmark, the national business authority has officially registered Novonesis, marking the completed merger between enzyme and cultures suppliers Novozymes and Chr Hansen. The combined group will have an estimated annual revenue of €3.7bn.
The new company, Novonesis, combines both companies’ strengths and aims to innovate and develop ‘transformative’ biosolutions that improve how populations produce, consume, and live. According to Novonesis CEO and president Ester Baiget, “we have gathered the brightest minds and together with my 10,000 colleagues, we will unlock the limitless potential of biosolutions.”
Novonesis will be headed up by former Novozymes CEO Baiget, leading a team dominated by other ex-Novozymes employees (just one-third of the new executive team joins from Chr Hansen). Former Chr Hansen CEO Mauricio Graber has stepped down with the creation of Novonesis.
By joining forces, the new company automatically expands its portfolio and reach. Novonesis will now serve more than 30 industries with its 10,000-strong workforce. Infrastructure spans around 40 R&D and application centers and more than 20 manufacturing sites.
The name ‘Novonesis’ comes from a mash-up between ‘novo’, meaning new, and ‘genesis’ – Greek for ‘origin’ or ‘beginning’. Half of the portfolio is now dedicated to biosolutions for human health, including prebiotics, probiotics, and enzymes, and for food and beverage applications. The latter spans ingredients that extend shelf-life in categories such as dairy and bakery; serve the infant nutrition industry; and claim to improve taste, texture, and nutrition in plant-based foods.
“Novonesis will present a 2024 financial outlook no later than March 31. This includes more detail impact and benefits within the F&B portfolio,” Danstrup revealed.
From a financial perspective, there is strong collaboration potential: the company is expecting annual revenue synergies of an estimated €200m, with an EBIT impact thought to be achievable within four years of completion. Cost synergies of an estimated €80-90m is thought to be realized within three years of completion.
As to the new company’s sustainability ambitions, Novonesis is aiming for carbon neutrality by 2050. By 2030, the company is aiming for a 75% reduction in absolute CO2 emissions from its own operations (scope 1 and 2) and a 35% reduction in absolute CO2 emissions from its supply chain (scope 3).
The merger follows, and was conditional on, the divestment of Novonesis’ lactase enzyme business to Kerry Group, which has now been approved.
