Chr. Hansen Holding A/S announced June 9 that it has entered into an agreement with the owners of UAS Laboratories LLC to acquire 100% of the Wisconsin-based business-to-business company specializing in clinically documented probiotics.
According to the announcement, the acquisition will further strengthen and expand Chr. Hansen’s global microbial platform and Human Health business and is aligned with the strategy of pursuing bolt-on acquisitions that fit into the microbial platform.
UAS Labs is being acquired from the private equity fund Lakeview Equity Partners, the management team and other shareholders at a transaction value, net of tax assets, of $530 million. UAS Labs has 230 employees and is expected to generate revenues of around $85 million and earnings above $30 million before synergies in 2020, Chr. Hansen said.
Closing of the transaction is pending customary regulatory review in the U.S.
“We are excited about the acquisition of UAS Labs and look forward to welcoming all its talented people to join forces in our shared purpose — to develop and expand the global probiotics market — and we look forward to building upon the strengths of both companies. The two UAS Labs production facilities in the United States will increase our flexibility and capacity to produce and also create a better balance in our geographical footprint. We believe that the UAS Labs acquisition will accelerate our efforts to grow our Health & Nutrition business globally, especially in the Asian markets,” Chr. Hansen chief executive officer Mauricio Graber said.
The acquisition is fully aligned with Chr. Hansen’s capital allocation principles and does not affect the ability to pay out an ordinary dividend of 40-60% of net profit, the announcement said. The purchase price will be financed from a low-interest bridge facility provided by core banks.
UAS Laboratories, founded in 1979, is a vertically integrated global supplier and manufacturer of probiotic solutions to customers worldwide. The company has 230 employees with two manufacturing sites based in Madison and Wausau, Wis.
Chr. Hansen is a leading global bioscience company that develops natural solutions for the food, nutritional, pharmaceutical and agriculture industries. It develops and produces cultures, enzymes, probiotics and natural colors for a rich variety of foods, confectionery, beverages, dietary supplements, animal feed and plant protection.