Novamont acquires the Norwegian BioBag Group
Bases for the expansion of the Italian B-Corp in North Eastern Europe, North America and Australia
Italy’s Novamont, a world leader in the development and production of biochemicals and compostable bioplastics, announced today it has acquired BioBag Group, a Norway based leading supplier of low-impact solutions for waste collection and packaging. The acquisition will allow Novamont to benefit from BioBag’s highly specialised independent distribution in areas where the buyer is less present. The two companies will be able to offer a more complete solution set to the market and to create long-lasting alliances with key stakeholders such as large retailers and communities. Together they plan to build even more demonstrators (innovative projects that enhance separate organic waste collection and composting systems) especially in North America, the Scandinavian countries, Eastern Europe and Australia.
The transaction is an important step forward in a collaborative journey that began twenty-five years ago. Novamont’s original vision in the 1990’s was to build an integrated value chain for bioplastics and biochemicals linked to initiating and improving the separate collection of organic waste. This became the starting point for what is now called the circular bioeconomy to which both Novamont and BioBag have made important contributions. There are three reasons that make the acquisition particularly fitting: Strong cultural compatibility developed over two decades of partnership, which has led to a harmonious vision and shared values, as well as the integration of teams around common projects aimed at creating a circular bioeconomy model centered on soil health and the regeneration of local areas; A highly complementary value chain because Novamont is mainly focused upstream and has developed the Mater-Bi supply chain that ranges from agricultural raw materials, bio monomers, bioplastics and low impact formulations. It has brought its materials to the market through applications that require biodegradability in composting facilities and soil. The close collaboration with large retailers and local communities interested in innovative low-impact solutions has reduced the use of traditional plastic and the accumulation of microplastics in the environment. BioBag is focused downstream. The group is a pioneer in the development and distribution of a wide range of compostable applications starting from the Scandinavian countries and specialises in a series of support services for these applications. BioBag has also developed a growing e-commerce platform, which is an important market channel for their existing applications and for the expanded product range that will be derived from Novamont's innovations and upstream integration.
Strengthened service capabilities for Novamont's partners and customers: BioBag is a marketing and distribution company for low-impact applications, which already is and will increasingly be at the service of Novamont partners along the supply chain, helping to maximise the opportunities for product development and geographical expansion. BioBag also brings to the market different and complementary applications to Mater-Bi’s, thus enlarging the joint offer and giving maximum service support to retail and other sectors. Novamont has expanded considerably in the past decade, in particular through internal growth, by acquiring and regenerating obsolete industrial sites. This transaction will allow Novamont to further expand its compostable bioplastics business into Northern/Eastern Europe, North America and Australia. BioBag will continue to operate as an independent organization, with the same leadership team who has achieved excellent results over the past few years.
Novamont’s CEO Catia Bastioli said: “This agreement allows Novamont to expand its model of circular bioeconomy. By joining our best skills and energies and fully integrating our supply chains we can better serve our partners upstream and downstream while further accelerating circular solutions for different market sectors and for communities pursuing our goal of producing more with less.” BioBag’s CEO Kjell Ivar Bache is very pleased with the new owners and sees the acquisition as a win-win: “We have been close partners with Novamont for decades and for BioBag this is like coming home. With Novamont, BioBag becomes part of a world-leading bioplastics and biochemicals company. This will enable further international growth together. We are truly excited!” said Mr. Bache. The advisors involved on the buyer’s side were Hi.Lex and Hjort for legal and PWC for financial, tax and labour, whereas the seller’s counsels were Bryan Garnier for M&A and Wiersholm for legal.
EFA News - European Food Agency