Novozymes acquires Natural Industries Inc. to strengthen position in bioagriculture
Novozymes, the world leader in bioinnovation, has signed a definitive agreement to acquire Natural Industries Inc. based in Houston, U.S. Natural Industries Inc. has annual revenues of $5 million and is a bioagricultural company.
“I am excited to have the people and technologies of Natural Industries Inc. join our growing BioAg business. Natural Industries Inc. expands Novozymes’ position in the important biocontrol segment and improves our capabilities to grow our business in key U.S. markets on high-value crops like fruits and vegetables,” said Thomas Videbæk, Executive Vice President of Novozymes and head of BioBusiness.
Natural Industries Inc. and Novozymes have agreed not to disclose the financial terms of the agreement. The acquisition does not impact Novozymes’ financial guidance for 2012.
Stronger position in fast-growing $1 billion market
Biological technologies are natural solutions with multiple modes of action. They are used to improve plant health and growth or combat diseases across various broad-acre crops such as corn and soy and high-value crops such as salads, strawberries and nuts.
The biological solutions complement the use of traditional chemicals and pesticides, which have a world market worth $150 billion. By contrast, the emerging bioagriculture market is estimated to be worth about $1 billion with an annual growth rate of 10-15%.
The bioagriculture market is driven by farmers wanting to utilize potent biological solutions to improve agricultural productivity and reduce the environmental impact of their operations, explained Videbæk:
“By applying the right cocktail of biological technologies you can add 4-5% to crop yields. This makes it a cost-effective solution for farmers to safeguard high investments in seeds and agricultural chemicals. Also, due to increasing consumer awareness, regulations and environmental impact from traditional chemicals, there is growing interest in utilizing biological solutions as an integral part of agricultural practices.”
New innovation for high-value crop market
“Founded in 1992 and with 24 talented employees, Natural Industries Inc. brings a wealth of knowledge in the biocontrol area. The company has a proven portfolio of products, new pipeline opportunities and good market coverage for high-value crops in key regions of the U.S. The acquisition is a good example of how we can grow and utilize our platform and leading position in this area as well as accelerate innovation,” said Videbæk.
“Novozymes has long-term ambitions to be a key player in this market. With our platform today, our expertise within bioinnovation and R&D, we expect to continue to play a leading role in growing the bioagriculture market,” he added.
More on Natural Industries Inc. can be found here.