Danisco A/S has today signed an agreement to acquire Agtech Products, Inc., a
US-based agricultural biotech company, for a total consideration of USD 42
million on an EV basis.
Danisco CEO Tom Knutzen comments: ‘Acquiring Agtech will expand our already
leading cultures position into the new sector of Animal Nutrition where it
represents an exciting opportunity to bring new value to our customers. It will
also reinforce our aspiration to be the leader in providing health and
nutrition solutions to the animal production industry and throughout the food
chain - From Farm to Fork. This acquisition represents an important step in our
strategy to provide a platform for accelerated growth.'
We expect to complete the transaction by the end of 2008. We expect the
transaction to have a neutral effect on Danisco's operating profit for the
first financial year. In 2007, Agtech reported revenue of approx. USD 12
million. Over the past five years, Agtech has delivered an average CAGR of more
than 20%.
Agtech is dedicated to the development, manufacture and technical application
of microbial-based products for the animal nutrition industry. Products include
direct-fed microbials, i.e. products that contain viable beneficial
microorganisms which improve digestion and animal well-being. Other products
include silage preservatives and livestock waste treatment microbial products,
as well as an emerging line of cultures to ensure food products safety.
Yours faithfully
Tom Knutzen
CEO
