June 26, 2013
Novozymes'' acquisition of TJ Technologies Inc., strengthens its position in bio-agriculture
Press release
a€？In building Novozyme''s business within sustainable bio-agriculture solutions, the world leader in bio-innovation has signed a definitive agreement to acquire TJ Technologies Inc., which provides North American farmers with biological solutions that enhance plant growth, increase stress tolerance, and improve yields.
Based in Watertown, South Dakota in the United States, TJ Technologies Inc. brings in annual revenue close to US$15 million. Founded in 1978, TJ Technologies Inc. develops and markets proprietary microbial and micronutrient products for agriculture. It is a significant player in the US market for bio-yield enhancement products, with a strong position in seed treatment of corn, as well as other important crops such as soy and wheat.
"TJ Technologies Inc. is a frontrunner in bio-yield enhancers, and this acquisition will further underpin Novozymes'' position with complementary and capable products, while strengthening commercial access," says Thomas Videb？|k, executive vice president of Novozymes and head of business development.
"Combining our existing products and leading global name with TJ Technologies'' strong and proven portfolio, brands and regional market coverage, will strengthen Novozymes'' commercial position in important crop markets."
The acquisition complements Novozymes'' leading position within the growing market for sustainable bio-agriculture solutions. Biological technologies are natural solutions to improve plant health and growth, and to combat diseases across broad-acre crops such as corn and soy, as well as high-value crops like leafy greens, fruits, and vegetables. The global market for agricultural bio-solutions is growing, as a rising world population increases the need for sustainable farming.
"Today, the global population is growing at a much faster pace than agricultural production. The challenge is to increase yields on the same amount of agricultural land without any additional costs to the environment," explains Videb？|k. "Farmers are increasingly becoming aware of effective biological solutions. With the acquisition of TJ Technologies Inc., we further extend our offerings to this exciting, biological market."
"With a proven portfolio of products and more than 30 years of experience in the market place, TJ Technologies'' talented employees will add solid knowhow to Novozymes, which can leverage its leading position to bring these existing products to market, and further develop new innovation and growth opportunities for the bioagriculture market," Videb？|k concludes.
The financial terms of the agreement are not disclosed. The acquisition does not impact Novozymes'' financial guidance for 2013, as the acquisition does not have a material impact on 2013 group sales and earnings, and only a minor negative impact on return on invested capital for 2013. Closing of the acquisition is expected within the next week.