Novonesis has signed an agreement to acquire the remaining shares of MicroBioGen, an Australian biotechnology company specializing in yeast strains for industrial applications. The deal builds on Novonesis’ existing 23% stake, acquired in 2013, and marks a significant step in the company’s 2030 strategy to strengthen its yeast capabilities and research and development (R&D) infrastructure. This acquisition consolidates a decade-long collaboration focused on advanced yeast solutions for bioethanol production, enhancing Novonesis’ position as a pure-play biology company.

The transaction terms will not be disclosed. Completion is subject to customary regulatory approvals, including clearance from the ACCC, Australia’s national competition, consumer, fair trading and product safety regulator. As part of the agreement, Novonesis committed to continuing support for MicroBioGen’s existing partners and ensuring continuity in its collaborations.

Strategic Rationale

Ester Baiget, CEO of Novonesis, stated that the acquisition reflects a disciplined investment focus to drive growth. She noted that the move strengthens both yeast capabilities and R&D capabilities. Claus Crone Fuglsang, Chief Scientific Officer at Novonesis, described MicroBioGen as a perfect match, citing more than a decade of close collaboration. He added that the company looks forward to integrating MicroBioGen’s technology into Novonesis to develop biosolutions needed by customers.

Geoffrey Bell, CEO and Co-founder of MicroBioGen, said joining Novonesis is a strong fit for the company and its employees. He emphasized that after more than a decade of collaboration, he could not think of a better home for the company.

Company Profiles

MicroBioGen has demonstrated success through its bioethanol partnership with Novonesis, co-developing the Innova® yeast series which delivers exceptional industrial performance. The company serves industry leaders globally with opportunities in existing and emerging industries, ranging from optimizing yeast for baking, sustainable feed and energy, to food applications.

What the Numbers Show

The acquisition leverages an existing financial relationship, as Novonesis already holds a 23% stake in MicroBioGen since 2013. By acquiring the remaining shares, Novonesis fully internalizes the value generated by this long-term collaboration, particularly in the bioethanol sector where they have co-developed proprietary yeast strains. This move aligns with Novonesis’ broader strategy of investing approximately 10% of annual sales into innovation, signaling a commitment to deepening its biological solution capabilities rather than expanding through unrelated diversification.