Novozymes Acquires U.S.-Based Enzymes Company 32135

Novozymes Acquires U.S.-Based Enzymes Company

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

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

"Besides expanding our product range to include new biological products,we gain a number of potential synergies within research and development, as wellas with regard to customers," said Ten Melnik, president of NovozymesBiologicals. 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 inAugust 2001, to acquire companies with a relatively small price tag and of asize to be rapidly integrated into existing activities. Novozymes (www.novozymes.com)has also been beefing up its licensing portfolio, agreeing in May 2002 todevelop and produce hyaluronic acid under a license agreement with OklahomaCity, Okla.-based Hyalose LLC. Prior to that, in January 2002, Novozymes signedan agreement with The Netherlands-based DSM N.V. to semi-exclusively licensephytase products.

George A. Jeffreys, which was Novozymes' preferred enzyme supplier for yearsprior to this acquisition, had 2001 sales of 60 million Danish kroner(approximately US$7.6 million). In comparison, Novozyme's 2001 fiscal sales were5.3 billion Danish kroner (approximately US$670.9 million).

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