BRAIN Biotech AG expands stake in successful enzyme producer Biocatalysts Ltd.
- BRAIN has acquired additional shares in Biocatalysts Ltd.
- Biocatalysts strong business trend
- Planned additional capacity expansion now targeted earlier
BRAIN Biotech AG has expanded its shareholdings in the successful enzyme producer Biocatalysts Ltd., Wales, to 82.2% by the purchase of additional shares from minority shareholders. Due to the strong business performance at Biocatalysts Ltd. current production capacity will be fully utilised although only coming on stream in early 2021. The 2nd phase of expansion is planned to be accelerated as a result.
BRAIN Biotech AG has purchased an additional 16.7% in Biocatalysts Ltd. as two minority shareholders have exercised their put option rights. BRAIN now holds a total of 82.2% (previously 65.55%) in the daughter company. The purchase price was GBP 3.9 million.
Biocatalysts is a global biotechnology company producing speciality enzymes at commercial scales for a variety of industries, including food, flavour, life science, and pharma. Biocatalysts offers both off-the-shelf enzyme products as well as customised enzyme discovery, development and manufacturing service. The company has grown strongly over the last years and the business generates solid profitability. In recent years, BRAIN has invested into the large scale fermentation capacities at Biocatalysts to pave the way for future growth and even stronger profitability. The business has demonstrated strength throughout the Corona pandemic and Brexit.
Rod Sears Black, MD Biocatalysts Ltd., says: “We're happy about the confidence shown by BRAIN and the continued support from the group. Our strong market position in the production and distribution of enzymes combined with BRAIN’s deep scientific base is a winning combination.”
Adriaan Moelker, CEO BRAIN Biotech AG, states: “We are very satisfied with the growth rate and the business performance of the Biocatalysts team in Cardiff. It has been our stated intention to further strengthen the products business at BRAIN and Biocatalysts is at the centre of this strategy. The recently increased large scale fermentation capacity has triggered fast expansion of the business and we now look to accelerate further with our investment into additional production capacities. We will start a pre-engineering phase soon.”
Lukas Linnig, CFO at BRAIN Biotech AG comments: “The execution of put option rights by two minority Biocatalysts shareholders has allowed us to increase our holding in this highly profitable daughter company. The earlier exercise is at more favorable terms for BRAIN which will allow us to release around EUR 3.0 million of provisional debt from our balance sheet and further strengthen our equity base. We ultimately aim to gain full ownership of Biocatalyts so we welcome the exercise of the put options. In addition, the ongoing buyout of minority shareholders will allow us to crystalize synergies within our BioIndustrial segment.”
About BRAIN
BRAIN Biotech AG is a leading European supplier of bio-based products and solutions such as enzymes and proteins, microbial production strains, natural compounds and biotechnological solutions for more sustainable industrial processes. The company focuses on the fields of nutrition, health and environment.
BRAIN Biotech AG is the parent company of the international BRAIN Biotech Group. The Group's business activities are divided into three segments: The BioProducts segment comprises the product business with specialty enzymes and other proteins, for which the Group operates fermentation facilities in the United Kingdom and production facilities in continental Europe and the United States. The BioScience segment offers research-intensive custom solutions based on enzyme technology, strain development, bioprocess development and natural product screening. The BioIncubator segment conducts its own R&D projects or those initiated with partners with high value-added potential. A particularly promising incubator project is the development of the Company's own CRISPR-based gene editing technology platform, which is currently being established and expanded by Akribion Genomics (in foundation planning).
Through its own R&D activities, BRAIN Biotech Group is continuously expanding its product portfolio in the field of specialty enzymes and small molecules. The latter are the starting point for screenings, e.g. for novel drug candidates for pharmaceutical applications.
BRAIN Biotech AG has been listed on the Prime Standard of the Frankfurt Stock Exchange since February 9, 2016 (ticker symbol: BNN; securities identification number: ISIN DE0005203947 / WKN 520394). The company employs approximately 330 people and generated revenues of EUR 55,3 million in the fiscal year 2022/23.
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Disclaimer
This press release contains forward-looking statements. These statements reflect the current views, expectations, and assumptions of the management of BRAIN Biotech AG, and are based on information currently available to the management. Forward-looking statements are no guarantees of future performance, and entail both known and unknown risks as well as uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Numerous factors exist that could influence the future performance of and future developments at BRAIN Biotech AG and the BRAIN Biotech Group. 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, as well as other factors. BRAIN Biotech AG does not undertake any obligation to update or revise any forward-looking statements.