Novozymes Acquires U.S.-Based Enzymes Company

BAGSVAERD, Denmark--Novozymes A/S, based here, acquired the activities of George A. Jeffreys Inc., based in Salem, Va., June 11. Both companies produce and sell naturally occurring microorganisms and enzymes. The price of the acquisition was not disclosed.

George A. Jeffreys, which employs 17 people and produces enzymes and microorganisms for the maintenance of septic tanks and for inclusion in animal feed, will be integrated into Novozymes Biologicals, acquired by Novozymes in July 2001.

"Besides expanding our product range to include new biological products, we gain a number of potential synergies within research and development, as well as with regard to customers," said Ten Melnik, president of Novozymes Biologicals. The company reported this acquisition will increase Novozymes' turnover by approximately 25 million Danish kroner, or US$3.2 million.

This business move fits with Novozymes' long-term strategy, announced in August 2001, to acquire companies with a relatively small price tag and of a size to be rapidly integrated into existing activities. Novozymes (www.novozymes.com) has also been beefing up its licensing portfolio, agreeing in May 2002 to develop and produce hyaluronic acid under a license agreement with Oklahoma City, Okla.-based Hyalose LLC. Prior to that, in January 2002, Novozymes signed an agreement with The Netherlands-based DSM N.V. to semi-exclusively license phytase products.

George A. Jeffreys, which was Novozymes' preferred enzyme supplier for years prior to this acquisition, had 2001 sales of 60 million Danish kroner (approximately US$7.6 million). In comparison, Novozyme's 2001 fiscal sales were 5.3 billion Danish kroner (approximately US$670.9 million).

Calls to George A. Jeffreys were not returned by press time.