NOVOZYMES ACQUIRES NATURAL INDUSTRIES
Nov. 29, 2012
Source: Novozymes news release
Novozymes, the world leader in bioinnovation, has signed a definitive agreement to acquire Natural Industries Inc. based in Houston, TX.
Natural Industries Inc. is a bioagricultural player with annual revenues of $5 million.
"I am excited to have the people and technologies of Natural Industries Inc. join our growing BioAg business. Natural Industries Inc. expands Novozymes' position in the important biocontrol segment and improves our capabilities to grow our business in key U.S. markets on high-value crops like fruits and vegetables," says Thomas Videbęk, Executive Vice President of Novozymes and head of BioBusiness.
Natural Industries Inc. and Novozymes have agreed not to disclose the financial terms of the agreement.The acquisition does not impact Novozymes' financial guidance for 2012.
Stronger position in fast-growing, $1 billion market
Biological technologies are natural solutions with multiple modes of actions. They are used to improve plant health and growth or combat diseases across various broad acre crops such as corn and soy and high value crops such as salads, strawberries and nuts.
The biological solutions complement the use of traditional chemicals and pesticides, which have a world market worth of $150 billion. By contrast, the emerging bioagriculture market is estimated to be worth about 1$ billion with an annual growth rate of 10-15%.
The bioagriculture market is driven by farmers wanting to utilize potent biological solutions to improve agricultural productivity and reduce the environmental impact of their operations.
Videbęk explains, "By applying the right cocktail of biological technologies you can add 4-5% to crop yields. This makes it a cost effective solution for farmers to safeguard high investments in seeds and agricultural chemicals. Also, due to increasing consumer awareness, regulations and environmental impact from traditional chemicals, there is growing interest in utilizing biological solutions as an integral part of agricultural practices."
New innovation to high-value crop market
"Founded in 1992 and with 24 talented employees, Natural Industries Inc. brings a wealth of knowledge in the biocontrol area. The company has a proven portfolio of products, new pipeline opportunities and good market coverage for high value crops in key regions of the US.
The acquisition is a good example on how we can grow and utilize our platform and leading position in this area as well as accelerate innovation," Videbęk says. "Novozymes has long-term ambitions to be a key player in this market. With our platform today, our expertise within bioinnovation and R&D, we expect to continue to play a leading role in growing the bioagriculture market."
Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries, we create tomorrow's industrial biosolutions, improving our customers' business and the use of our planet's resources.
With over 700 products used in 130 countries, Novozymes' bioinnovations improve industrial performance and safeguard the world's resources by offering superior and sustainable solutions for tomorrow's ever-changing marketplace.
Read more at www.novozymes.com.