Chr. Hansen acquires LGG Probiotic strain from Valio OY.
A supplier of probiotics to dietary supplements, infant formula and dairy, Chr. Hansen is looking to strengthen its platform across all three categories through the acquisition of the LGG business.
The price of the acquisition is EUR 73 million and will be funded through Chr. Hansen's own cash position and existing credit facilities.
Alongside Chr. Hansen's own BB-12 strain, Lactobacillus rhamnosus GG (protected under the trademark LGG) has been used in food and dietary supplements since 1990 and has a proven beneficial effect on gastrointestinal and immune systems. It has been studied in more than 200 clinical studies and described in more than 800 scientific publications.
Chr. Hansen has been the largest producer of LGG products for human dietary and infant formula for more than 10 years. Apart from acquiring the full rights to the strain, Chr. Hansen also takes over a number of specialty strains already in production and a bacterial collection of around 3,200 strains.
"One of the ambitions in our Nature's No. 1 strategy is to expand our current business within microbial solutions for human health," said Cees de Jong, CEO of Chr. Hansen Holding A/S. "The acquisition allows us to capture the full potential of the LGG brand across markets for dietary supplements and infant formula offerings, as well as pursuing new opportunities in dairy."
Lasse Nagell, senior vice president, Human Health, Chr. Hansen, said the markets for well documented probiotic strains are experiencing very strong growth in dietary supplements and drives an entire category in fermented milk products, such as yogurt, kefir, etc. "We believe that there are vast opportunities for the LGG brand considering Chr. Hansen's wide geographic reach and deep technical knowledge."
Annikka Hurme, CEO of Valio OY, added: "An important element in the deal is closer cooperation between the two companies' world leading innovations teams, which will further strengthen the impressive science backing LGG."
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|Title Annotation:||Industry News|
|Date:||Oct 1, 2016|
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