US-based Deerland Probiotics & Enzymes announced its acquisition of Denmark-based Bifodan A/S.
Deerland is a supplier of science-backed solutions for microbiome health. Bifodan is a life science company specialized in developing, manufacturing and distributing probiotic product solutions as private label dietary supplements, medical devices and OTC drugs. The companies said the move will give them a larger global footprint.
“This is a sign of increasing globalization in the nutritional ingredient supply business. Historically, we saw a wave of partnerships with Asia for lower cost supply of commodity ingredients and then we mostly saw European companies taking more leadership on larger specialty ingredients like fish oils and probiotics. Now we’re seeing more North American-based global players partnering with European technology leaders as evidenced by this transaction,” Grant Ferrier told NutraIngredients-USA.
Ferrier, the CEO and co-founder of Nutrition Capital Network, an entity that connects investors and growth companies in the nutrition and health & wellness industry, added, “Deerland has become a more aggressive and ambitious broad-based global supplier and developer of proprietary ingredient products. The company had a strong position in enzymes but obviously probiotics is an adjacent category that has lots of synergies in terms of customer relationships.”
The merge will compliment current offerings
The complimentary portfolios give the companies a competitive edge and larger market share. The new arrangement allows for a significant market expansion and distribution network, giving both companies a wider customer base.
“We are excited to join the Deerland organization and have great expectations to leverage the combined competencies of our companies to create a strong global player,” stated Steen Andersen, Bifodan’s current CEO, who has been named President Deerland Probiotics and Enzymes International for the combined company and will be responsible for the Denmark site and all activities outside the Americas.
Deerland and Bifodan said they are both focused on providing innovative, scientifically-sound formulation and development services.
“We believe this investment will allow us to bring even greater value to our respective customers and to the enzyme and probiotic industries we serve,” said Deerland’s Scott Ravech, who will continue in his role as CEO with global oversight of the newly combined company.
More efficient
Major investment is necessary for any company involved in research and development. So the companies may have also merged to leverage costly R&D as well as operations
Ferrier told NutraIngredients-USA that “It’s also encouraging to see larger companies with major financial backing making more significant investments in companies developing technologies and product solutions unrelated to the drug and pharmaceutical industry.”
The company said the acquisition of Bifodan gives Deerland a larger global footprint, highlights the company’s commitment to its vision for all people of all cultures to benefit from its enzyme, probiotic and prebiotic health products. “Deerland and Bifodan are leaders in their respective markets. Bringing together this expertise will benefit both companies, our employees, and our customers,” Ravech said.
Impact on the industry
“All in all, this is a good sign for the nutrition industry and the maturity and evolution of business models. It’s also a good sign for investments in technology and we presume science-based research on efficacy, not to mention the impacts on human health and reduction of future health care costs,” said Ferrier.