Novonesis to acquire MicroBioGen and expand industrial yeast capabilities

Novonesis has signed an agreement to acquire the remaining shares in Australian biotechnology company MicroBioGen, expanding its capabilities in industrial yeast following more than a decade of collaboration between the two companies.

• Novonesis has agreed to acquire MicroBioGen, in which it already holds a 23% stake, with financial terms remaining undisclosed.
• MicroBioGen has spent more than 20 years developing yeast genetics for industrial applications, with particular expertise in bioethanol.
• The companies have previously collaborated on the Innova yeast series, while MicroBioGen's platform also has applications spanning food, baking, sustainable feed and energy.

The proposed acquisition builds on Novonesis' initial investment in MicroBioGen in 2013 and its current 23% ownership of the company.

MicroBioGen has developed a platform technology and library of yeast genetics over more than 20 years. Its work has focused on improving the industrial performance of yeast, particularly for bioethanol production, although the company's technology also has potential applications in food, baking, sustainable feed and energy.

Novonesis and MicroBioGen have worked together on yeast technologies for bioethanol, including co-development of the Innova yeast series.

"This acquisition marks an additional step in our 2030 strategy. It strengthens our yeast capabilities, strengthens our R&D capabilities, and reflects our disciplined investment focus to drive growth," said Ester Baiget, CEO of Novonesis.

For Novonesis, the acquisition will bring MicroBioGen's yeast expertise and genetic library further into a business already centered on microbiology and industrial fermentation.

The Danish biosolutions company invests approximately 10% of its annual sales in innovation and identified the acquisition as a way to add to its existing biological and R&D capabilities.

"We see MicroBioGen as a perfect match building on more than a decade of close collaboration, and we look forward to integrating their technology into Novonesis," said Claus Crone Fuglsang, Chief Scientific Officer at Novonesis. "With the acquisition, we will continue to strengthen our capabilities and develop the biosolutions our customers need."

Sydney-based MicroBioGen describes its model as "Yeast Innovation as a Service," using its yeast platform and genetic library to develop strains for industrial partners.

Although bioethanol has been a prominent part of the relationship with Novonesis, MicroBioGen has identified opportunities for its technology in food applications as well as baking, feed and energy.

The company's work centers on tailoring yeast genetics for the demands of particular industrial environments. Its partnership with Novonesis and the resulting Innova series provide an established commercial example of that approach in bioethanol.

"Joining Novonesis is a strong fit for MicroBioGen and its employees," said Geoffrey Bell, CEO and Co-founder of MicroBioGen. "After more than a decade of close collaboration, we could not think of a better home for the company."

Novonesis confirmed that it would continue supporting MicroBioGen's existing partners following the acquisition and would maintain continuity in its current collaborations.

Financial terms were not disclosed.

Completion remains subject to customary regulatory approvals, including approval from the Australian Competition and Consumer Commission (ACCC).

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