Enzyme Technology Novozymes Acquires Enzyme Business from Canadian Iogen Corporation
Enzyme technology specialists Novozymes announced the acquisition of Iogen Bio-Products, the industrial enzyme business of Ottawa-based Iogen for CAD 67.5 million (approximately € 49,7 million) and potential earn-out payments of up to CAD 12.5 million (approximately DKK 70 million).
Copenhagen/Denmark – “Iogen Bio-Products is a good fit for Novozymes,” says Andrew Fordyce, Vice President of Global Enzyme Sales and Customer Solutions at Novozymes. “We get a number of products that complement our existing product portfolio and welcome a talented group of employees who are very good at developing and producing industrial enzymes.” The deal provides Novozymes with all commercial rights to Iogen Bio-Products’ existing product portfolio, pipeline, facilities and know-how. Novozymes acquires all of Iogen Corporation’s industrial enzyme business. The acquisition does not include the purchase of assets that relate to Iogen Corporation’s bioenergy process technologies.
A Positive Impact on Novozames Enyzyme Business Sales Expected
Iogen Bio-Products, which entered the industrial enzyme industry in 1991, produces and sells enzymes for the pulp & paper, textile, grain-processing and animal feed industries. The company has close to 70 employees and sells more than 20 products globally.
This acquisition is expected to have a positive impact on Novozymes’ sales growth in 2013 of around 0.5 percentage point depending on when the acquisition is closed, the company stated. The outlook for ROIC for 2013 is being changed from ~20% to 19-20% as a result of the additional capital invested. Novozymes' outlook for free cash flow excludes acquisitions and remains unchanged for 2013. Outlook assumes rates for the company’s key currencies remain at the closing rates on January 18 for the rest of 2013.