COPENHAGEN, DENMARK — Ingredients supplier Novozymes A/S is merging with Chr. Hansen Holding. When the merger is completed, the new company initially will be named Novozymes and a new company name will be developed and introduced at a later date.

Novozymes is a supplier of enzymes and microbial technologies. Chr. Hansen produces natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. The combined company will have annual sales of approximately €3.5 billion ($3.69 billion), employ nearly 10,000 and operate 23 manufacturing plants and 38 research and development centers around the world, according to the companies.

“We are excited by the immense, additional potential we see in joining Novozymes and Chr. Hansen to create a true global biosolutions leader underpinned by our shared Danish heritage,” said Jørgen Buhl Rasmussen, chairman of Novozymes. “We are grateful to have such a supportive shareholder in Novo Holdings, one that shares our belief that the two companies will be even better together and enable significant shareholder value accretion.”

Upon completion of the agreement, Ester Baiget, the current chief executive officer of Novozymes, would assume leadership of the combined group as CEO. The chief financial officer would be Lars Green, the current CFO of Novozymes. Both roles would be part of the future executive leadership team.

Novo Holdings is the largest shareholder of both Novozymes and Chr. Hansen. The terms of the agreement are that Chr. Hansen shareholders will receive 1.5326 new B-shares in Novozymes, each with the nominal value of DKK 2 (.28₵) for each individual Chr. Hansen share upon completion of the merger, reflecting an implied premium of 49% to the Chr. Hansen share price, valuing each Chr. Hansen share at DKK 660.55 ($93.62) per share.

After completion, Novozymes shareholders will own in aggregate 44%, Chr. Hansen shareholders will own in aggregate 34% and Novo Holdings will own in aggregate 22% of the total share capital of the combined group.

The merger is expected to close during the fourth quarter of 2023. 

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