Novozymes, a leader in bioinnovation, has signed a definitive agreement to acquire TJ Technologies Inc. based in Watertown, S.D.
The acquisition is yet another important step in building Novozymes' business within BioAgriculture, in the case of TJ Technologies specifically within the bioyield enhancement segment. Today, Novozymes is a leading player in the bioagriculture industry, and this acquisition will further strengthen Novozymes' position with complementary technologies and products.
"With this acquisition we continue to build our business within sustainable bioagriculture. TJ Technologies Inc. is a frontrunner in bioyield enhancers, and this acquisition will further underpin Novozymes' position, while strengthening commercial access," says Thomas Videbæk, Executive Vice President of Novozymes and head of Business Development. "Combining our existing products and leading global name with TJ Technologies' strong and proven portfolio, brands and regional market coverage will strengthen the joint company's commercial position in important crop markets."
Bringing new products and innovation to market
Founded in 1978, TJ Technologies Inc. develops and markets proprietary microbial and micronutrient products for agriculture. It is a significant participant in the U.S. market for bioyield enhancement products, with a strong position in seed treatment of corn as well as other important crops.
"With its proven portfolio of products and new pipeline opportunities, TJ Technologies' talented employees will add solid experience and knowhow to Novozymes, which can leverage its leading position to bring the existing products to market, and further develop new innovation and growth opportunities for the bioagriculture market," says Videbæk.
Biological solutions on the rise globally
Biological technologies are natural solutions with multiple modes of action. They are used to improve plant health and growth or combat diseases across various broad-acre crops such as corn and soy and high-value crops such as leafy greens, fruits, and vegetables.
Globally, the market for biological solutions in agriculture is expanding at a rapid pace. Driven in particular by growing populations there is an increasing need for sustainable agricultural production.
"Today, the global population is growing at a much faster pace than agricultural production. The challenge is to increase yields on the same amount of agricultural land without any additional costs to the environment," explains Thomas Videbæk. "Increasingly so, farmers are becoming aware of potent biological solutions that both improve agricultural productivity, while also reducing the environmental impact of their operations. With the acquisition of TJ Technologies Inc., we further extend our offerings to this exciting, biological market."
The biological solutions complement the use of traditional chemicals and pesticides, which have a world market worth around $150 billion. By contrast, the emerging bioagriculture market is estimated to be worth about $1.5 billion with an annual growth rate of 10-15%.
TJ Technologies Inc. and Novozymes have agreed not to disclose the financial terms of the agreement. The acquisition does not impact Novozymes' financial guidance for 2013.