Novozymes has signed a definitive agreement to acquire Natural Industries Inc., a company based in Houston, USA. Natural Industries Inc. is a bioagricultural company with annual revenues of $5 million. Natural Industries Inc. and Novozymes have agreed not to disclose the financial terms of the agreement.
The bioagriculture market is driven by farmers wanting to utilize potent biological solutions to improve agricultural productivity and reduce the environmental impact of their operations, says the company’s news release. Biological technologies can add 4% to 5% to crop yields, according to Novozymes. With increasing consumer awareness, regulations and environmental impact from traditional chemicals, there is growing interest in utilizing biological solutions as an integral part of agricultural practices, the company adds.
The company says the biological solutions complement the use of traditional chemicals and pesticides, which have a world market worth of $150 billion. By contrast the emerging bioagriculture market is estimated to be worth about $1 billion with an annual growth rate of 10% to 15%