Just over a year after announcing merger plans, Danish providers of enzymes and cultures Novozymes and Chr Hansen have joined forces under a new company name: Novonesis.

The brand has been officially registered

In Denmark, the national business authority has officially registered Novonesis, marking the completed merger between enzyme and culture providers Novozymes and Chr Hansen. The combined group will have an estimated annual revenue of 3.7 billion euros.

Coming together to form a "global biosolutions partner," Novonesis combines the strengths of both companies and aims to innovate and develop "transformative" biosolutions that improve how populations produce, consume, and live, commented Novonesis CEO and President, Ester Baiget.

"And we have brought together the brightest minds, and together with my 10,000 colleagues, we will unlock the unlimited potential of biosolutions."

Novonesis will be led by former Novozymes CEO Baiget, heading a team dominated by other former Novozymes employees (only one-third of the new executive team joins from Chr Hansen). Former Chr Hansen CEO Mauricio Graber resigned upon the creation of Novonesis.

How will Novonesis business functions be organized?

By joining forces, the new company automatically expands its portfolio and coverage. Novonesis will now serve over 30 industries with a strong workforce of 10,000. The infrastructure includes approximately 40 research and development centers and applications and over 20 production sites.

Why the name "Novonesis"?

The name "Novonesis" comes from a blend of "novo," meaning new, and "genesis" - Greek for "origin" or "beginning." As Novozymes also used the reference "novo," as did Novo Holdings (an investor in both Chr Hansen and Novozymes), the new company claims the word is "globally associated with strong capabilities" and a "Nordic heritage." "These are all assets and values that are shared by the future combined company."

Half of the portfolio is now dedicated to biosolutions for human health (including prebiotics, probiotics, and enzymes) and for food and beverage applications. "Human Health" incorporates Novozymes Human Health and Chr Hansen Human Health divisions, while "Food & Beverages" incorporates Novozymes Food & Beverage and Chr Hansen's Food Cultures & Enzymes businesses.

The latter includes ingredients that extend shelf life in categories such as dairy and bakery; serving the infant nutrition industry; and claiming to improve the taste, texture, and nutrition of plant-based foods.

The other half of the portfolio is dedicated to biosolutions for planetary health, including bioenergy and carbon capture technologies, as well as plant and animal health.

"All Novonesis solutions fall under three commercial business areas that are directly responsible for sales, marketing, applied research, and customer-oriented innovation," said Lina Danstrup, head of external communications at Novonesis, to FoodNavigator.

"They also drive business choices and set priorities for cross-functional collaboration. This reflects our customer and innovation-focused approach."

Novonesis Revenue Synergies and Sustainability Ambitions

Financially, there is strong potential for collaboration: the company expects annual revenue synergies of approximately 200 million euros, with an EBIT impact considered achievable within four years of completion.

Cost synergies estimated at EUR 80-90 million are expected to be realized within three years of completion.

"Novonesis will present a financial outlook for 2024 at the latest by March 31. This includes a more detailed impact and benefits in the F&B portfolio," Danstrup revealed.

Beyond 2025, Novonesis intends to "continue to deliver accelerated sustainable growth" from its existing business, along with new opportunities for innovation and growth.

Regarding the sustainability ambitions of the new company, Novonesis aims for carbon neutrality by 2050. By 2030, the company targets a 75% reduction in absolute CO2 emissions from its own operations (scopes 1 and 2) and a 35% reduction in absolute CO2 emissions from its supply chain (scope 3).

The merger is also conditioned by the divestment of Novonesis' lactase enzyme business to Kerry Group, which has now been approved.