Danish enzyme maker Novozymes has agreed to buy Cork-based PrecisionBiotics in a deal worth €80m.
The deal for the Cork company marks Novozymes' second acquisition of a probiotics company in recent years as it seeks to grow its human health business.
"The presence that we have today in human health is small, and this is why we are coming with an acquisition to get the critical mass, to drive the momentum," newly appointed chief executive Ester Baiget said.
Baiget, who took over the helm of Novozymes in February, said the main focus was on growth, both in the top line and profitability. "You will see the combination of both moving forward."
Novozymes said it would partly finance the acquisition through cash and partly through bank facilities. It would not affect dividend payouts or share buy-back plans, it said.
PrecisionBiotics produces live bacteria, known as probiotics, which can improve gut health in animals and humans, as part of a $6 billion market for human probiotic supplements. Its products include Alflorex and Zenflore.
In a strategy revamp last year Novozymes said it would focus on new businesses including the development of probiotics to improve humans' throat and gut health, building on the 2016 acquisition of German microbial research company Organobalance.
The bolt-on acquisition of PrecisionBiotics will be earnings per share accretive by 2022 and will have a minor negative impact on operating margin this year, Novozymes said.
Novozymes' largest business area is sales of enzymes to detergent makers such as Procter & Gamble and Henkel, but the company also has divisions in food & beverages and bioenergy, such as making enzymes for ethanol production.
"By becoming a part of Novozymes, we will get a global presence across businesses and new capabilities within science and discovery of new strains," Barry Kiely, CEO and co-founder of PrecisionBiotics Group, said today.
"This will help us to grow by developing new products where we can combine enzymes and probiotics," Mr Kiely added.
