COPENHAGEN, Denmark -- Industrial biotechnology company Novozymes has signed a definitive agreement to acquire Natural Industries Inc. Natural Industries is a Houston, Texas-based bioagricultural company with annual revenues of $5 million.
“I am excited to have the people and technologies of Natural Industries Inc. join our growing BioAg business," said Thomas Videbæk, executive vice president of Novozymes and head of BioBusiness. "Natural Industries Inc. expands Novozymes’ position in the important biocontrol segment and improves our capabilities to grow our business in key U.S. markets on high-value crops like fruits and vegetables."
Natural Industries and Novozymes have agreed not to disclose the financial terms of the agreement. The acquisition does not impact Novozymes’ financial guidance for 2012.
Biological technologies are natural solutions with multiple modes of actions. They are used to improve plant health and growth or combat diseases across various broad acre crops such as corn and soy and high value crops such as salads, strawberries and nuts.
The biological solutions complement the use of traditional chemicals and pesticides. The bioagriculture market is driven by farmers wanting to utilize potent biological solutions to improve agricultural productivity and reduce the environmental impact of their operations.
“By applying the right cocktail of biological technologies you can add 4-5 percent to crop yields," Videbæk said. "This makes it a cost effective solution for farmers to safeguard high investments in seeds and agricultural chemicals. Also, due to increasing consumer awareness, regulations and environmental impact from traditional chemicals, there is growing interest in utilizing biological solutions as an integral part of agricultural practices.”
Natural Industries was founded in 1992 and currently has 24 employees. The company has a portfolio of products, new pipeline opportunities and market coverage for high value crops in key regions of the U.S.