The world’s largest provider of microbial technologies and enzymes, Novozymes, and Chr. Hansen, a bioscience supplier, have successfully merged to form Novonesis, a global partner for multiple industries, creating biosolutions for better lives and a healthier planet.
The Danish merger — reportedly the largest ever in the country — was finalized following the final registration with the Danish Business Authority. According to the announcement, the combined group will have annual revenue of approximately €3.7 billion.
Novonesis brings together 10,000 people worldwide and an expertise that spans more than 30 different industries under the leadership of Ester Baiget, former CEO of Novozymes.
“We have gathered the brightest minds and together with my 10,000 colleagues, we will unlock the limitless potential of biosolutions,” shared Ester Baiget, now President and CEO of Novonesis.
Financial ambitions
The name Novonesis combines the Greek word “genesis,” meaning origin or beginning, and ” novo,” meaning new. It aims to reflect the company’s commitment to solid scientific capabilities, purpose-driven mindset, Nordic heritage, and societal contribution, explains the new biosolutions giant.
Novonesis will leverage a global network of over 23 manufacturing sites and nearly 40 R&D and application centers serving many industries. It will offer a diverse portfolio, with half of it focused on food and health biosolutions (probiotics, prebiotics, enzymes, and other functional ingredients for plant-based foods) and the other half on planetary health solutions to reduce chemicals’ use (bioenergy, animal and plant health, and carbon capture. Novonesis also includes Novozymes’ Household Care division.
In terms of financial ambitions, as reported by the company, Novonesis aims to achieve an expected organic revenue growth of 6-8% (CAGR) through 2025, along with an EBIT margin of 29% by 2025 (excluding integration costs and PPA amortization). The company anticipates annual revenue synergies of €200 million and cost synergies of €80-90 million within four and three years of completion, respectively.
Powerful biosolutions for sustainability
On the sustainability front, Novonesis has set ambitious goals, including carbon neutrality by 2050, a 75% reduction in absolute CO2 emissions from operations by 2030, and a 35% reduction in absolute CO2 emissions from the supply chain. The company is also committed to promoting gender diversity, aiming for a minimum of 45% women and 45% men across all professionals and senior management positions by 2030.
Novonesis also announced that it will provide proforma numbers, revenue figures, and key financial metrics by March 31, including an outlook for 2024. In addition, the company will host a Capital Markets Day in London on the 18th of June, 2024, focusing on the integration process, synergies, financial performance, and the combined technology platform.
“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,” shared Cees de Jong, Chairman of Novonesis.
