Novozymes A/S (CPSE:NZYM B) entered into an agreement to acquire Microbiome Labs for approximately $250 million on December 18, 2020. The terms of the agreement include an upfront payment cash payment of $125 million on a cash and debt-free basis. The agreement also includes an earn-out model with a potential maximum pay-out of 100% of the up-front cash payment, contingent on sales targets being achieved in 2022. The transaction will be financed by cash and bank facilities. The transaction is not subject to any antitrust filings and is expected to close in the first half of January 2021. The acquisition will have a negative effect in 2021 of roughly 0.5% point on both Novozymes' EBIT margin and ROIC including goodwill. The acquisition is expected to be EPS accretive by 2022. Rothschild & Co SCA (ENXTPA:ROTH) acted as financial advisor to Microbiome Labs. Brad Akason, Riccardo Cazzoli, Anthony Crisman, Cynthya Goulet and Ray Reaves of Lincoln International acted as financial advisor to Novozymes.

Novozymes A/S (CPSE:NZYM B) completed the acquisition of Microbiome Labs on January 8, 2021. All closing conditions related to the transaction have been fulfilled.