Its products are applied to crops, including soybean, pulse crops, forage crops, peanuts, corn, and wheat. These products are currently primarily sold in the US, Canada, Argentina, and Brazil.

The acquisition strengthens our presence in the growing field of agricultural biologicals, and the complementary business of EMD/Merck Crop BioScience’s has a strong strategic fit with our existing BioAg business. Sustainable products and technologies will in the future play an even greater role in the agricultural industry as they allow effective and more sustainable ways to grow crops. Novozymes is dedicated to leading continued innovation in this space, developing biotechnology solutions for agriculture.

—Steen Riisgaard, President & CEO of Novozymes

Novozymes says that the strategic rationale for acquiring EMD/Merck Crop BioScience includes:

• Established and proven technology. EMD/Merck Crop BioScience’s biofertility products and technologies are well defined and established, with documented and proven efficacy gains on numerous soils and crops
• Growing business. The biofertility solutions business is growing fast. It is currently estimated to be worth around US$250 million, forming part of the agricultural biologicals industry, which is worth more than US$1 billion. Biofertility solutions provide farmers with an environmentally friendly and cost-efficient crop yield enhancer. EMD/Merck Crop BioScience’s biofertility business has grown by roughly 15% annually during the last seven years.
• Strategic fit. EMD/Merck Crop BioScience has a strong strategic fit with Novozymes’ existing BioAg business, complementing its product range and geographical scope. EMD/Merck Crop BioScience has a long track record of commercializing innovative and highly efficient products, and Novozymes’ biotechnology platform can be leveraged to develop new and improved products.
• Global leadership: EMD/Merck Crop BioScience’s strong presence in the US and South America, combined with Novozymes’ strong presence in Canada and Brazil, make Novozymes a major player in sustainable solutions for the ag biologicals industry and the market leader in biofertility solutions. The acquisition is thus an important step in strengthening Novozymes’ presence in the biofertility solutions segment and expanding its presence in ag biologicals, the company said.
• Supportive of long-term expectations. The expectations for EMD/Merck Crop BioScience’s long-term sales, earnings, and balance sheet performance support Novozymes’ long-term expectations.

The acquisition is subject to customary regulatory approvals and is expected to be completed between February and May 2011. The acquired business will be consolidated within Novozymes and will be reported as part of BioBusiness (microorganisms) going forward.