Novozymes acquires US-based Microbiome Labs for US$125 million

By Stephen Daniells

- Last updated on GMT

© Zhanna Hapanovich / Getty Images
© Zhanna Hapanovich / Getty Images

Related tags Probiotics M&A gastrointestinal health immune support Cognitive health microbiome

Denmark’s Novozymes has announced the acquisition of Illinois-based Microbiome Labs, which offers a range of proprietary probiotic and microbiome solutions.

The acquisition enhances Novozymes’ presence in the North American probiotics market, a market valued at around US$ 2.5 billion and expected to grow with a high-single-digit rate over the next 3-5 years.

Microbiome Labs delivered double-digit sales growth in 2020, resulting in a revenue of about US$40 million with a positive cash flow and an EBIT margin slightly lower than Novozymes’ EBIT margin, said the companies in a release.

“Within a few years, Microbiome Labs has built a solid market position and become a key opinion leader on the microbiome in the consumer health industry, and I am very happy to welcome Microbiome Labs to the Novozymes family,” ​said Baiget. “With its solid product portfolio and position with health practitioners, the company is a natural fit and matches our strategy of winning through scientifically proven solutions with specific health benefits.

“Probiotics for human use is a selected growth area for Novozymes, and it brings the opportunity of advancing our activities within human health. This is an attractive and relatively young industry and, by acquiring Microbiome Labs, we gain a broader portfolio and a strong position in the North American probiotics market. Combined with our organically developed activities in OneHealth, we ensure a strong foundation for future growth,” ​added Baiget.

Novozymes has established the brand OneHealth to market solutions (probiotics and enzymes) within human health under one umbrella.

Microbiome Labs

The Illinois-based company was founded in 2012 and employs 80 people. Its proprietary probiotic and microbiome solutions are marketed under both the company’s own supplement brands and in private label products.

The products cover benefits within gastrointestinal, immune, metabolic, and cognitive health. The branded products are sold exclusively through the healthcare practitioner channel.

“Novozymes is the right home for us. We get global market access and world class science to develop new solutions combining enzymes and probiotics to create clinically-proven solutions that improve human health and well-being,”​ says Dr Tom Bayne, CEO at Microbiome Labs.

The transaction is expected to close in the first half of January 2021.

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