Novozymes has signed a definitive agreement to acquire Natural Industries Inc. based in Houston, TX. Natural Industries Inc. is a bioagricultural player with annual revenues of $5 million.
“I am excited to have the people and technologies of Natural Industries Inc. join our growing BioAg business,” says Thomas Videbæk, Executive Vice President of Novozymes and head of BioBusiness. “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.”
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 such as 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%-15%.
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, Thomas Videbæk explains:
“By applying the right cocktail of biological technologies you can add 4%-5% 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.”