Chr. Hansen to Divest Coatings and Excipients Business

31/05/07 Chr. Hansen will divest its Coatings and Excipients business. The company says that the sale will strengthen focus and position within cultures and enzymes, natural colors and flavors.

Following several months of evaluation it has been decided to investigate the possibility of divesting Chr. Hansen’s activities in the excipients and coatings business, including the production facility in Stoughton, Wisconsin, USA.

The activities within the coatings and excipients area are very specialized and targeted mainly at US customers. The products are non-active, components used in the pharmaceutical and related industries for tablet manufacturing.

“Chr. Hansen has for more than a year ago stated that it is not a core business area for the company. A sale will allow Chr. Hansen to focus on its three focus areas of cultures and enzymes, natural colors, and natural flavors,” says Lars Frederiksen, CEO.

As Chr. Hansen’s production facility in Stoughton represents the state-of-the-art within this field, the analysis concludes that a buyer currently in the coatings and excipients business will have the best opportunities to capitalize upon both technical capabilities as well as the know-how of the approximately 20 people in the current Chr. Hansen business unit. As a part of the evaluation, a business improvement plan has been implemented to improve the profitability and activity in the coatings and excipients business unit, and the first indications of the effect of this plan are very positive.

At this early stage in the sales process, there has been good signs of interest for the business unit and Chr. Hansen anticipate a closing of the sale before the end of the year.

There will be no immediate changes in ordering or other service procedures for the excipients and coatings products.