BRAIN AG acquires majority stake in Biocatalysts
For over 35 years, Biocatalysts (and more recently Biocatalysts Inc, USA) has focused on the development, production and distribution of speciality enzymes for various industries such as food and fine chemicals. BRAIN is a leading technology company in the field of industrial biotechnology, developing microorganisms, natural substances and enzymes for the industrial use.
The strategic acquisition of a majority stake in Biocatalysts is intended to accelerate product driven growth in the fast growing speciality enzyme market and broaden the portfolio of the enzyme business of BRAIN. This synergy, with respect to research and development as well as production and global distribution will hugely benefit both companies and their customers. After the completion of the transaction, Biocatalysts Ltd. will continue to operate under the current company name.
Biocatalysts Ltd. is profitable and generated revenues of approximately € 9.03 million (£ 7.978 million) in the 2015/2016 financial year and. The revenue for the financial year 2016/17 is € 10.81 million* (£ 9,546 Mio.), which corresponds to a growth rate of 19.7% compared to the previous year. Biocatalysts Ltd.’s turnover has grown by an compound annual growth rate (CAGR) of 12% between 2014/15 and 2016/17.
Complementary portfolio and technology fit
The strategic partnership between BRAIN and Biocatalysts will widen the commercial opportunities based on a strong complementary product portfolio and a perfect technology fit. Dr. Jürgen Eck, CEO of BRAIN AG, commented: “The new strategic partnership with Biocatalysts is aimed at accelerating product development, production and marketing of innovations in a growing bioeconomy which includes the field of speciality enzymes. Biocatalysts is one of the leading players in this field with proven production expertise as well as access to global markets. Together we can fuel our complementary enzyme businesses, increase growth margins and strengthen BRAIN Group’s BioIndustrial segment which aims at marketing own product candidates.”
Stuart West, Managing Director of Biocatalysts Ltd., commented: “Becoming a member of the BRAIN Group is an exciting opportunity to broaden our business in the rapidly growing speciality enzymes markets. Jointly we can more effectively develop innovative products for various industry sectors and bring them to market. BRAIN and Biocatalysts have a complementary product portfolio and also an excellent fit in terms of our vision to actively shape the future bioeconomy.”
Andrew Ellis, Technical and Compliance Director of Biocatalysts Ltd., added: “Merging the scientific and technological competencies of Biocatalysts and BRAIN offers great new technological possibilities. At Biocatalysts we have strong expertise and capabilities in speciality enzyme development and production at various scales, especially in the food, fine chemical and pharma sectors. We are currently expanding our state-of-the-art production facilities aligned to our continued success in enzyme development. BRAIN is a highly innovative biotechnology pioneer possessing a strong and complementary technology portfolio. Getting direct access to BRAIN’s BioArchive which encompasses a huge variety of enzymes and entire metabolic pathways will fuel our joint activities.”
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