DENMARK – Global biosciences company and ingredients provider to the food and beverage industry, Chr. Hansen has entered into an agreement to acquire Wisconsin-based probiotics producer UAS Laboratories from Lakeview Equity Partners for US$530 million.
Chr. Hansen said that the acquisition of UAS Labs, a B2B company specializing production of probiotics, will extend its microbial platform and strengthen probiotic production flexibility as part of its strategy of pursuing bolt‐on acquisitions in the microbial business.
UAS Labs operates two facilities in Wisconsin, close to Chr. Hansen’s own facilities in Milwaukee, with fermentation capacity and downstream processing, which Chr. Hansen said will complement its own facilities, allowing for increased flexibility in phasing of CAPEX projects in the coming years.
“We are excited about the acquisition of UAS Labs and look forward to welcoming all its talented people, to join forces in our shared purpose – to develop and expand the global probiotics market, and we look forward to building upon the strengths of both companies,” said Mauricio Graber, CEO of Chr. Hansen.
“The two UAS Labs production facilities in the United States will increase our flexibility and capacity to produce, and also create a better balance in our geographical footprint. We believe that the UAS Labs acquisition will accelerate our efforts to grow our Health & Nutrition business globally, especially in the Asian markets.”
Commenting on the deal, Kent Velde, President of Lakeview Equity Partners said that UAS Labs is well positioned for continued growth and success within Chr. Hansen’s business platform. Closing of the transaction is pending customary regulatory review in the United States.
Upon closing of the transaction, Chr. Hansen expects the firm to generate revenues of around US$85 million in 2020. The company said that the acquisition does not affect its 2019/20 outlook, although it expects a minor negative impact to EBIT, depending on the timing of the closing.
The new acquisition agreement with USA Labs follows the Danish biosciences company’s April deal to acquire Austria-based B2B company specializing in probiotics for women’s health, HSO Health Care GmbH.
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