Danisco Strengthens Strategic Platform Through Acquisition of Agtech

Danisco CEO Tom Knutzen comments: ‘Acquiring Agtech will expand our already leading cultures position into the new sector of Animal Nutrition where it represents an exciting opportunity to bring new value to our customers.

28/10/08 Danisco A/S has signed an agreement to acquire Agtech Products, Inc., a US-based agricultural biotech company, for a total consideration of USD 42 million on an EV basis.

Danisco CEO Tom Knutzen comments: ‘Acquiring Agtech will expand our already leading cultures position into the new sector of Animal Nutrition where it represents an exciting opportunity to bring new value to our customers. It will also reinforce our aspiration to be the leader in providing health and nutrition solutions to the animal production industry and throughout the food chain - From Farm to Fork. This acquisition represents an important step in our strategy to provide a platform for accelerated growth.’

We expect to complete the transaction by the end of 2008. We expect the transaction to have a neutral effect on Danisco’s operating profit for the first financial year. In 2007, Agtech reported revenue of approx. USD 12 million. Over the past five years, Agtech has delivered an average CAGR of more than 20%.

Agtech is dedicated to the development, manufacture and technical application of microbial-based products for the animal nutrition industry. Products include direct-fed microbials, i.e. products that contain viable beneficial microorganisms which improve digestion and animal well-being. Other products include silage preservatives and livestock waste treatment microbial products, as well as an emerging line of cultures to ensure food products safety.