Chr Hansen buys LGG from Valio

Supplier of probiotics Chr Hansen has strengthened its microbial platform across all three of its categories, through the acquisition of the LGG business from Valio of Finland. Expected growth in this area is 7-9%.

Cees de Jong, CEO of Chr Hansen Holding, says, “One of the ambitions in our strategy is to expand our current business within microbial solutions for human health. The LGG strain and our own probiotic strain BB-12 are the best documented probiotic strains in the world and the acquisition allows us to capture the full potential of the LGG brand across markets for dietary supplements and infant formula offerings, as well as pursuing new opportunities in dairy.”

Lasse Nagell, senior vice president of human health at Chr Hansen, explains, “The markets for well documented probiotic strains are experiencing very strong growth in dietary supplements and drives an entire category in fermented milk products, such as yogurt, kefir, etc. We believe that there are vast opportunities for the LGG brand considering Chr Hansen’s wide geographic reach and deep technical knowledge.”

Annikka Hurme, CEO of Valio OY, adds, “An important element in the deal is closer co-operation between the two companies’ world leading innovations teams, which will further strengthen the impressive science backing LGG.”

The price of the acquisition is €73 million and will be funded through Chr Hansen’s own cash position and existing credit facilities. Closing is expected during autumn 2016.

 

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