17.03.2018
B.R.A.I.N. Biotechnology Research And Information Network AG DE0005203947
DGAP-News: B.R.A.I.N. Biotechnology Research And Information Network AG: Targeting speciality enzymes markets - BRAIN AG acquires majority stake of leading speciality enzyme producer Biocatalysts Ltd. to accelerate business in high-growth markets
DGAP-News: B.R.A.I.N. Biotechnology Research And Information Network AG /
Key word(s): Investment/Mergers & Acquisitions
B.R.A.I.N. Biotechnology Research And Information Network AG: Targeting
speciality enzymes markets - BRAIN AG acquires majority stake of leading
speciality enzyme producer Biocatalysts Ltd. to accelerate business in
high-growth markets
17.03.2018 / 12:55
The issuer is solely responsible for the content of this announcement.
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Targeting speciality enzymes markets
BRAIN AG acquires majority stake of leading speciality enzyme producer
Biocatalysts Ltd. to accelerate business in high-growth markets
* Strengthening of BRAIN's BioIndustrial segment through expanding access
to attractive speciality enzyme markets and cutting edge enzyme
production facilities
* Widening of commercial opportunities through excellent complementary
portfolio and technology fit including access to BRAIN's unique
BioArchive and Biocatalyst's MetXtra metagenomic library
* More effective targeting of speciality enzymes markets and growth of the
global distribution network
Zwingenberg, Germany
Cardiff, United Kingdom
17 March 2018
The bio-economy company BRAIN AG (together with its subsidiaries the "BRAIN
Group" or "BRAIN") announces the signing of a share purchase agreement
between BRAIN and Biocatalysts Ltd. based in Cardiff, Great Britain, and
active in the field of speciality enzymes. Therein the takeover of the
majority stake of Biocatalysts's shares by BRAIN is governed. The
transaction will be completed within the first quarter of 2018.
For over 35 years, Biocatalysts (and more recently Biocatalysts Inc, USA)
has focused on the development, production and distribution of speciality
enzymes for various industries such as food and fine chemicals. BRAIN is a
leading technology company in the field of industrial biotechnology,
developing microorganisms, natural substances and enzymes for the industrial
use.
The strategic acquisition of a majority stake in Biocatalysts is intended to
accelerate product driven growth in the fast growing speciality enzyme
market and broaden the portfolio of the enzyme business of BRAIN. This
synergy, with respect to research and development as well as production and
global distribution will hugely benefit both companies and their customers.
After the completion of the transaction, Biocatalysts Ltd. will continue to
operate under the current company name.
Biocatalysts Ltd. generated revenues of approximately EUR 9.03 million*
(£ 7.978 million) in the 2015/2016 financial year and is profitable. The
revenue for the financial year 2016/17 is EUR 10.81 million*
(£ 9,546 Mio.), which corresponds to a growth rate of 19.7% compared to the
previous year. Biocatalysts Ltd.'s turnover has grown by an compound annual
growth rate (CAGR) of 12% between 2014/15 and 2016/17.
Complementary portfolio and technology fit
The strategic partnership between BRAIN and Biocatalysts will widen the
commercial opportunities based on a strong complementary product portfolio
and a perfect technology fit. Dr. Jürgen Eck, CEO of BRAIN AG, commented:
"The new strategic partnership with Biocatalysts is aimed at accelerating
product development, production and marketing of innovations in a growing
bioeconomy which includes the field of speciality enzymes. Biocatalysts is
one of the leading players in this field with proven production expertise as
well as access to global markets. Together we can fuel our complementary
enzyme businesses, increase growth margins and strengthen BRAIN Group's
BioIndustrial segment which aims at marketing own product candidates."
Stuart West, Managing Director of Biocatalysts Ltd., commented: "Becoming a
member of the BRAIN Group is an exciting opportunity to broaden our business
in the rapidly growing speciality enzymes markets. Jointly we can more
effectively develop innovative products for various industry sectors and
bring them to market. BRAIN and Biocatalysts have a complementary product
portfolio and also an excellent fit in terms of our vision to actively shape
the future bioeconomy."
Andrew Ellis, Technical and Compliance Director of Biocatalysts Ltd., added:
"Merging the scientific and technological competencies of Biocatalysts and
BRAIN offers great new technological possibilities. At Biocatalysts we have
strong expertise and capabilities in speciality enzyme development and
production at various scales, especially in the food, fine chemical and
pharma sectors. We are currently expanding our state-of-the-art production
facilities aligned to our continued success in enzyme development. BRAIN is
a highly innovative biotechnology pioneer possessing a strong and
complementary technology portfolio. Getting direct access to BRAIN's
BioArchive which encompasses a huge variety of enzymes and entire metabolic
pathways will fuel our joint activities."
Growing BRAIN BioIndustrial Segment
Frank Goebel, CFO of BRAIN AG, commented: "BRAIN has taken a number of
strategic steps in recent months to grow its future business. Few weeks ago
we founded our US subsidiary BRAIN LLC to internationalize our business
operations and improve customer relations in the US. Direct market access
and flexible production capacities are also of great importance. Therefore,
we have taken a new milestone in our M&A strategy for strengthening our
product-driven business segment BioIndustrial. Biocatalysts is a perfect
partner to accelerate the work from labs to products and participate in the
growth of the speciality enzyme markets."
In 2016, the global speciality enzymes market was worth
US$ 1,782 mn. The turnover is expected to grow to US$ 3,726 mn until 2025
(Transparency Market Research [TMR], 2018). TMR analysts project that the
global market for speciality enzymes is likely to rise at a compound annual
growth rate (CAGR) of 8.7 per cent between 2017 and 2025. North America and
Europe are expected to further lead the global speciality enzymes markets
with Europe clearly increasing market shares over the coming years (The
Freedonia Group).
* Average Exchange Rate of February 2018: 1 GBP = 1.132 EUR (Source: Oanda)
About BRAIN
B.R.A.I.N. Biotechnology Research and Information Network AG (BRAIN AG; ISIN
DE0005203947 / WKN 520394) is one of Europe's leading technology companies
in the field of industrial biotechnology, the core discipline of Bioeconomy.
As such, BRAIN identifies previously untapped, efficient enzymes, microbial
producer organisms or natural substances from complex biological systems
that can be put to industrial use. The innovative solutions and products
developed by help of this "Toolbox of Nature" are successfully applied in
the chemistry, the cosmetics and the food industries. BRAIN's business model
is based on two pillars - BioScience and BioIndustrial. The BioScience
comprises its frequently exclusive collaboration business with industrial
partners. BioIndustrial comprises the development and commercialization of
BRAIN's own products and active product components. Further information is
available at www.brain-biotech.de/en.
About Biocatalysts
Biocatalysts Ltd. is one of Europe's leading companies in speciality enzyme
production. Their strategy is to be able to satisfy any customer's enzyme
requirement either through standard, customised or novel enzyme products.
Their focus is on using new technology to drive down the cost of novel
enzyme production to make it more widely available across multiple sectors.
The development of their own metagenomic library, MetXtra gives access to
over 300 million unique sequences offering customers a huge choice of
potential enzymatic solutions. Biocatalysts enjoys strategic relationships
with many of the world's top blue chip companies. More information can be
found at www.biocatalysts.com.
BRAIN
Biotechnology Research
And Information Network AG
Darmstädter Str. 34-36
64673 Zwingenberg
Germany
www.brain-biotech.de
IR Contact
Dr. Martin Langer
Executive Vice President
Corporate Development
Tel.: +49-(0)-6251-9331-16
Fax: +49-(0)-6251-9331-11
E-Mail: [email protected]
Media Contact
Thomas Deichmann
Head of Public Relations
Tel.: +49-(0)-6251-9331-72
Fax: +49-(0)-6251-9331-11
E-Mail: [email protected]
Follow us on Twitter
https://twitter.com/BRAINbiotech
Disclaimer
This press release contains forward-looking statements. These statements
reflect the current views, expectations, and assumptions of the management
of BRAIN AG and are based on information currently available to the
management. Forward-looking statements are not guarantees of future
performance and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially from those
expressed or implied in such statements. There are numerous factors which
could influence the future performance by and future developments at BRAIN
AG and the BRAIN group of companies. Such factors include, but are not
limited to, changes in the general economic and competitive environment,
risks associated with capital markets, currency exchange rate fluctuations,
changes in international and national laws and regulations, in particular
with respect to tax laws and regulations, and other factors. BRAIN AG does
not undertake any obligation to update or revise any forward-looking
statements.
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17.03.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: B.R.A.I.N. Biotechnology Research And Information Network
AG
Darmstädter Straße 34-36
64673 Zwingenberg
Germany
Phone: +49 (0) 62 51 / 9331-0
Fax: +49 (0) 62 51 / 9331-11
E-mail: [email protected]
Internet: www.brain-biotech.de
ISIN: DE0005203947
WKN: 520394
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart, Tradegate Exchange
End of News DGAP News Service
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