Chr. Hansen is supplier of probiotics to dietary supplements, infant formula and dairy, and through the acquisition of the LGG® business, the company is now further strengthening its microbial platform across all three categories.
Alongside Chr. Hansen’s own BB-12® strain, the Lactobacillus rhamnosus GG (protected under the trademark LGG®) is the best documented probiotic strain in the world. It has been used in food and dietary supplements since 1990 and has a proven beneficial effect on the gastrointestinal and immune system. It has been studied in more than 200 clinical studies and described in more than 800 scientific publications.
The price of the acquisition is EUR 73 million and will be funded through Chr. Hansen’s own cash position and existing credit facilities.
The European Investment Bank (EIB) has provided a EUR 75m loan to Chr. Hansen for the company’s research into and development of innovative solutions in the food, nutritional, pharmaceutical and agricultural industries. The EIB financing will boost the company’s efforts to develop food products with a reduced amount of sugar, salt and fat, as well as an extended shelf life.
The EIB loan will also be earmarked for Chr. Hansen’s development of natural solutions improving the stability of probiotic cultures, protecting agricultural crops and exploring bacterial applications to human health. The global bioscience company will develop new products for its historical businesses covering dairy ingredients for cheese and fermented milk, cultures for meat and wine, as well as probiotics for human and animal health. At the same time, Chr. Hansen is also increasingly focusing on human health applications, in particular gastrointestinal health, immune health and women’s health.
The project will be carried out at Chr. Hansen’s main research and development centre located in Hørsholm (Denmark) and in Saint-Germain-lès-Arpajon (France). Over the project period until 2018, some 80 new research and development jobs are expected to be created.