31 January 2013 10:22 [Source: ICIS news]
LONDON (ICIS)--Novozymes has acquired industrial enzyme business Iogen Bio-Products from Canada-based biotechnology firm Iogen Corporation for Canadian dollar (C$) 67.5m (€49.6m), the Danish industrial enzyme producer said on Thursday.
The deal, expected to close in late February, could also include potential earn-out payments by Novozymes of up to C$12.5m, it added.
Novozymes said the acquisition complements its existing business in the pulp & paper, textile, grain-processing and animal feed industries.
The deal includes all of Iogen Corporation’s industrial enzyme business and provides Novozymes with all commercial rights to Iogen Bio-Products’ existing product portfolio, pipeline, and facilities.
The acquisition does not include the purchase of assets that relate to Iogen Corporation’s bioenergy process technologies, the company added.
Andrew Fordyce, vice president of global enzyme sales and customer solutions at Novozymes, said: “We get a number of products that complement our existing product portfolio.”
The company said the acquisition is expected to help its sales grow by around 0.5 percentage points in 2013 depending on when the deal is closed. However, it also forecasts a slightly negative impact on earnings before interest and taxes (EBIT) and its EBIT margin this year.
Novozymes slightly downgraded the outlook for its return on invested capital (ROIC) in 2013 from ~20% to 19-20% as a result of the additional capital invested.
(€1 = C$1.36)
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