Global bioscience company Chr. Hansen, which is based in Denmark, is expanding its probiotic portfolio and entering the U.S. market with the acquisition of Nutritional Physiology Co. (NPC) from Halifax Partners for $185 million. Founded in 1993 in Overland Park, Kansas, NPC produces and supplies probiotic products to the livestock industry that improve gut health, energy efficiency, and immunity in beef cattle and poultry.

 

Global demand for natural and beneficial feed additives has been climbing, and the demand for microbial solutions is expected to increase between 7% and 9%. The addition of NPC will strengthen Chr. Hansen’s standing in the sector and will also provide Chr. Hansen with multiple opportunities for synergies including supply chain efficiency, cross-selling, and advances in product innovation, which are expected to be realized within the first two years after the deal closes.

 

Commenting on the deal, Chr. Hansen chief financial officer, Søren Westh Lonning told FeedNavigator, “NPC and Chr. Hansen are a very good fit. We are not in the beef cattle probiotics segment so the deal gives us a way in there. And we hope to leverage its distribution network to expand our reach in the U.S. with our products such as silage inoculants. Meanwhile, NPC is a relatively new entrant to the poultry segment so it can capitalize on our expertise in the market.”

 

The company, which also sells colors, cultures, and enzymes, posted first quarter growth for 2015-16 of 14% with revenue of US$232 million. And though the company markets its products under various sales structures, including directly to feed mills, the group plans to target the sale of its beef microbial products to large farms especially in China and Latin America in the future.

 

The deal, which is awaiting regulatory approval, is scheduled to close in the first quarter of 2016.