Probiotics tailored to women: Chr. Hansen acquires HSO Health Care

21 Apr 2020 --- Chr. Hansen Holding has acquired Austrian B2B company HSO Health Care to bolster its position in the probiotics for women’s health space. The move strengthens and expands Chr. Hansen’s global microbial platform with the addition of HSO’s Astarte probiotic range to its portfolio. Moreover, it is aligned with its strategy of pursuing bolt-on acquisitions in the microbial platform, as outlined in its annual strategy. The transaction will be finalized later this week, and the involved parties will not be disclosing any financial details.

“This acquisition cements Chr. Hansen’s long-term commitment to its probiotics business and to keep unleashing the Power of Good Bacteria by offering more probiotic concepts.We see significant opportunities for further geographical expansion, for new customer development, and importantly for new products and concepts that target different life stages,such as menopause and fertility,” Christian Barker, Executive Vice President, Health & Nutrition, Chr. Hansen, tells NutritionInsight.

“Female  health is one of the fastest growing probiotic segments. Scientifically proven probiotic solutions are becoming increasingly popular among consumers because they can help enable a balanced female microbiota, ultimately contributing to women’s well-being and quality of life,” Barker adds.

Via the acquisition, Chr. Hansen will add in its range HSO’s branded portfolio Astarte, which is a global award-winning line of patented probiotic products specifically 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, HSO states. Moreover, Chr. Hansen will strengthen this category by combining Astarte with its own UREX products, creating a portfolio that can be leveraged globally and expanded into new adjacencies within women’s health.

“HSO has a unique, well-documented, and patented strain portfolio that complements Chr. Hansen’s portfolio in the women’s health segment, with similar scientific standards,” Barker says.

He adds that Chr. Hansen will support HSO with the capabilities to ensure strong geographical and customer expansion, as well as new innovations – drawing on Chr. Hansen’s commercial, R&D and production know-how. “Key employees and research partners are retained and a consultancy contract for the CEO of HSO is in place to ensure a smooth and successful transition,” Barker highlights.

Chr. Hansen Holding acquired Austrian B2B company HSO Health Care to bolster its position in the probiotics for women’s health space. “HSO has been working from a mindset of scientifically documented, natural products since our inception, and we are delighted that with the addition of the Astarte products to Chr. Hansen, we can make an even greater impact on a global scale,” comments Helmut Essl, CEO of HSO.

Financial details and impact
The acquisition is fully aligned with Chr. Hansen’s financial planning for the years ahead and its capital allocation principles, the company says. Moreover, the move does not impact the company’s ability to pay out an ordinary dividend of 40-60 percent of net profit. The purchase price of HSO will be financed from existing available cash and bank facilities and the acquisition has no impact on the 2019/20 outlook. 

Barker explains that the parties have agreed not to disclose the purchase price, but he mentions that HSO has an expected 2020 revenue of €15 million (US$16 million) and EBITDA margin of  more than 40 percent. “The outlook is strong double-digit organic growth until 2025 driven by geographical expansion, new customer relationships and new innovation,” he details.

“The agreement with HSO has demonstrated very fast growth through a globally recognized portfolio that complements our own UREX products nicely. Women’s health is a high-growth segment where innovation is becoming increasingly important, and with the addition of the Astarte portfolio we will be able to deliver innovation to a much larger market more quickly,” explains Mauricio Graber, CEO of Chr. Hansen.

The development of specific probiotics for women will offer a solution to ameliorate urogenital discomfort. This is a concern for women all over the world who are increasingly looking for intimate care products based on natural ingredients,Chr. Hansen says. It has driven the category for women’s health to be among the fastest-growing in the probiotics market. 

“Chr. Hansen is committed to strengthening its offering of probiotic concepts for women that can help to enable a balanced female microbiota, ultimately contributing to their well-being and quality of life,” concludes Graber. 

Earlier this month, the company also launched an online platform providing educational content on probiotics coined “The Probiotics Institute.” 

By Kristiana Lalou