Chr. Hansen acquires HSO Health Care to grow probiotics offering for women’s health

The acquisition of HSO Health Care GmbH cements Chr. Hansen’s long-term commitment to its probiotics business, and the fast-growing category for women’s health, where scientifically proven probiotic solutions are becoming increasingly popular among consumers.

Chr. Hansen Holding A/S and HSO Health Care GmbH entered into an agreement, under which Chr. Hansen will acquire HSO Health Care. The acquisition of the Austria-based B2B company specializing in probiotics for women’s health will strengthen and expand Chr. Hansen’s global microbial platform. This acquisition is aligned with the strategy of pursuing bolt-on acquisitions that fit into the microbial platform, as outlined in the Nature’s no. 1 strategy. The transaction will be finalized later this week.

A scientific approach to common urogenital discomforts

Urogenital discomfort is a concern for women all over the world who are increasingly looking for intimate care products based on natural ingredients. This has driven the category for women’s health to be among the fastest-growing in the probiotics market.

Highlights

• Women’s health is one of the fastest growing probiotic segments, with an estimated market CAGR of more than 15 % since 2015, which HSO has outperformed substantially
• Good fit to Chr. Hansen with easy integration and strong potential synergies
• Strengthens and expands Chr. Hansen’s microbial platform by adding HSO’s branded portfolio Astarte^™, a global award-winning line of patented probiotic products for women’s health
• Clinically documented and using four specific strains, Astarte™ has a powerful selling proposition and a strong brand position and is sold in multiple channels
• Strengthens our women’s health offering by combining Astarte^™ with Chr. Hansen’s UREX^™ products, creating a portfolio that can be leveraged globally and expanded into new adjacencies within women’s health
• Expected 2020 revenues of approximately EUR 15 million, with an EBITDA margin above 40 %. Strong double-digit organic growth expected from 2020-2025
• Chr. Hansen’s outlook for 2019/20 is unchanged

Financial implications and outlook

The acquisition is fully aligned with Chr. Hansen’s capital allocation principles, and does not impact the ability pay out an ordinary dividend of 40 – 60 % of net profit. The purchase price will be financed from existing available cash and bank facilities, and the acquisition has no impact on the 2019/20 outlook. Under the terms of the agreement the details of the transaction will not be disclosed.