Novozymes acquires Natural Industries Inc.

Novozymes, a world leader in bioinnovation, has signed a definitive agreement to acquire Natural Industries Inc. based in Houston, Texas. 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 US markets on high-value crops like fruits and vegetables,” Thomas Videbæk, executive vice president of Novozymes and head of BioBusiness, said in a recent press release.

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.

Biological technologies are natural solutions with multiple modes of actions. 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 like salads, strawberries and nuts.

The biological solutions complement the use of traditional chemicals and pesticides, which have a world market worth of $150 billion. By contrast, the emerging bioagriculture market is estimated to be worth about $1 billion with an annual growth rate of 10 to 15 percent.
 
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.
 
“By applying the right cocktail of biological technologies you can add 4 to 5 percent 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,” said Videbæk.

Videbæk also said that Natural Industries Inc. brings a wealth of knowledge in the biocontrol area, and has a proven portfolio of products, new pipeline opportunities and good market coverage for high value crops in key regions of the U.S. He added that the acquisition is a good example of how Novozymes can grow and use its platform and leading position in this area, as well as accelerate innovation.

For more information on Natural Industries Inc., visit www.naturalindustries.com. To learn more about Novozymes, visit www.novozymes.com.