NAAS, IRELAND – Kerry Group PLC has agreed to acquire part of the global lactase enzyme business of Chr. Hansen Holding A/S and Novozymes A/S on a carve-out basis.

The transaction, which is subject to approval by the European Commission, forms part of the merger approval process of Novozymes and Chr. Hansen.

The acquisition comprises certain trade and assets of Chr. Hansen’s global lactase enzyme business and 100% of the share capital of Nuocheng Trillion Food (Tianjin) Co., Ltd., a Chinese subsidiary of Novozymes.

The lactase enzymes business had attributable revenue of about €40 million ($43 million) in 2022 with sales in over 50 countries. Total consideration of €150 million is subject to closing adjustments. The transaction is expected to close in the first half of 2024.

Increased awareness of lactose intolerance is driving global demand for lactase, according to Kerry. The lactase enzymes business includes Nola products and adds enzyme technology to help Kerry create lactose-free sugar and reduced-sugar dairy products. Kerry previously acquired c-LEcta and Enmex.