Chr. Hansen acquires UAS Laboratories to increase probiotic production flexibility

By Jim Cornall

- Last updated on GMT

UAS Labs has two Wisconsin plants. Pic: Chr. Hansen
UAS Labs has two Wisconsin plants. Pic: Chr. Hansen

Related tags Chr hansen acquisition

Chr. Hansen Holding A/S has entered into an agreement with the owners of UAS Laboratories LLC to acquire 100% of the Wisconsin based B2B company, which specializes in clinically-documented probiotics.

Chr. Hansen said the acquisition of UAS Labs will further strengthen and expand its global microbial platform and human health business, and is aligned with the strategy of pursuing bolt-on acquisitions that fit into the microbial platform.

UAS Labs is being acquired from the private equity fund Lakeview Equity Partners, management team and other shareholders at a transaction value, net of tax assets, of $530m.

UAS Labs has 230 employees and is expected to generate revenues of around U$85m and EBITDA above $30m before synergies in 2020.

UAS Labs serves a range of application areas and has six trademarked strains within a range of indications including digestive disorders, immune stimulation, infant probiotics, weight management, and other areas.

Chr. Hansen said having broader offerings for customers will generate revenue synergies with current customers, and also provide access to new customers.

As UAS Labs has two facilities in Wisconsin, close to Chr. Hansen’s facilities in Milwaukee, with fermentation capacity and downstream processing, the company said the acquisition will allow for increased flexibility in phasing of CAPEX projects in the coming years.

Chr. Hansen’s said its outlook for 2019/20 is unchanged, although there will be a minor negative impact to EBIT, depending on the timing of the closing, which is pending regulatory review in the US, and is expected within one to three months.

Mauricio Graber, CEO of Chr. Hansen, said, “We are excited about the acquisition of UAS Labs and look forward to welcoming all its talented people, to join forces in our shared purpose – to develop and expand the global probiotics market, and we look forward to building upon the strengths of both companies.

“The two UAS Labs production facilities in the United States will increase our flexibility and capacity to produce, and also create a better balance in our geographical footprint. We believe that the UAS Labs acquisition will accelerate our efforts to grow our Health & Nutrition business globally, especially in the Asian markets.”

Kevin Mehring, CEO of UAS Labs, said, “Over the past seven years I have been honored to lead the team at UAS Labs with our science-backed probiotic solutions. We have grown and matured in our strain to solution manufacturing capabilities and commitment to clinical research. I could not be more proud of all the dedicated individuals that have worked tirelessly to get us to this point. We are very excited to join Chr. Hansen, and by our shared vision and future.”

Related topics Ingredients