Bifodan snapped up in Deerland acquisition to expand global footprint
05 Nov 2019 --- Life science company Bifodan A/S has been acquired by Deerland Probiotics & Enzymes, a US-based supplier of solutions for microbiome health. The Danish company is now a wholly-owned subsidiary, with the move giving Deerland a larger global footprint. Bifodan, which is currently presenting at CPhI Worldwide – where NutritionInsight is reporting from – highlights that the acquisition offers significant growth potential, with the product portfolios of both companies set to be rolled out at a larger scale.
“The financial details of the transaction are undisclosed information as both companies are privately held. Interesting for the company moving forward is the consolidated revenue and earnings, which will move the new company beyond the critical size to remain a significant player in the probiotic and enzyme industries globally,” Susanne Bækgaard, Vice President of Marketing, tells NutritionInsight.
Bifodan is currently presenting at CPhI Frankfurt. She continues that the new company will leverage the benefits of expanded geographical coverage and complementary product portfolios to experience double digit growth in the years to come.
In addition to rolling out both companies’ product portfolios on a larger scale, the combined product portfolio of probiotics, prebiotics and digestive enzymes will be available globally. Deerland and Bifodan will eventually merge into one global company profile, planned and executed in consideration of the brand value.
“Bifodan has been on a strong growth path over the past five to six years, consolidating our business focus in probiotic turnkey solutions. In an industry currently dominated by consolidation, expansion of our value chain is a key driver for business growth. Becoming part of the Deerland organization offers expansion on several levels and will surely offer significant growth potential for the combined company,” Bækgaard adds.
“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. Deerland and Bifodan are leaders in their respective markets. Bringing together this expertise will benefit both companies, our employees and our customers,” says Scott Ravech, CEO of Deerland.
Aside from a minor change in the current Bifodan organization in North America, both companies will continue their operations as usual. Ravech will maintain his role as CEO, with global oversight of the newly combined company and operational responsibility of the Americas. Bifodan’s current CEO, Steen Andersen, has been named President Deerland Probiotics and Enzymes International for the combined company and will be responsible for the site of Hundested, Denmark, and all activities outside the Americas.
A synergistic combination
Earlier this year, Bifodan launched products to support fertility, healthy pregnancy and development of a baby's microbiota.
Deerland highlights that the acquisition brings the company’s commitment to its vision for all people of all cultures to benefit from its enzyme, probiotic and prebiotic health products to the fore. Both businesses are focused on providing innovative, scientifically-sound formulation and development services, they say.
Deerland is based in Kennesaw, Georgia, and offers a variety of clinically-supported branded products, including DE111, PreforPro, ProHydrolase, Solarplast and Glutalytic. In addition to branded ingredients and customized formulations, Deerland offers full turnkey manufacturing services, including bulk blends, capsules, stick packs and tablets, as well as bottling and labeling.
Bifodan was founded by the first Danish dairy to isolate the Lactobacillus acidophilus bacteria in 1938. It has been dedicated to research and development of probiotic nutritional supplements since 1992. It develops and manufactures probiotic turnkey solutions for private label customers worldwide.
Earlier this year, Bifodan launched a new product portfolio dubbed “Probiotics for the First 1000 days,” which supports fertility, healthy pregnancy and development of a baby’s microbiota. Meanwhile, it also expanded its capacity with a new microbiology laboratory located in Hundested late last year.
By Katherine Durrell
