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Novozymes agrees to buy enzyme business of Biocon in India for $102 million
FRANKLINTON, N.C.—Novozymes A/S in July signed a definitive agreement under which it will acquire the enzyme activities of Biocon Ltd., Bangalore, India. The total consideration to be paid to Biocon will be Indian rupees equivalent of $115 million. The agreed purchase price is $102 million, of which $97 million will be paid up front, and $5 million when certain business targets have been met. In addition, $13 million is related to committed service fees and lease payments to be paid over a period of up to 10 years.
"The acquisition of Biocon's enzyme activities provides an important step for Novozymes in strengthening our position on the Indian market, which we believe has an attractive growth potential. The activities of Biocon have a good strategic fit to our existing enzyme business," says Steen Riisgaard, CEO of Novozymes. "We see several interesting market opportunities combined with synergy potential, making this a very interesting acquisition."
Biocon's board of directors unanimously recommended the sale and shareholders representing around 60 percent of the total shares have committed themselves to vote in favor of the transaction.
"Novozymes has the strength and focus to continue expanding the business, providing high-quality enzymes for the Indian market," said Biocon's chairman, Kiran Mazumdar-Shaw. "At the same time, Biocon can continue its strategic focus within the biopharmaceutical business."
Biocon Ltd. is one of India's leading biotechnology companies, specializing in biopharmaceuticals, contract research, clinical research and enzymes. Bioconis listed on the Bombay and the National stock exchanges in India.