Novamont, the Italy-based pioneer in the development and production of biochemicals and compostable bioplastics, has announced that it has purchased BioBag Group, a Norwegian supplier of low-impact solutions for waste collection and packaging. BioBag will continue to operate as an independent organisation. No changes will be made in the company’s leadership team.
The transaction cements the collaborative ties between the companies and the strong cultural compatibility developed over two decades of partnership, leading to a ‘harmonious vision and shared values’ regarding the creation of a circular bioeconomy model centred on soil health and local regeneration.
“For BioBag this is like coming home,” said BioBag’s CEO Kjell Ivar Bache.
The acquisition will allow Novamont to benefit from BioBag’s specialised independent distribution in areas where it is less present. As well, the companies’ highly complementary value chains mean that they will be able to offer a more complete solution set to the market. Novamont is mainly focused upstream and has developed the Mater-Bi supply chain that ranges from agricultural raw materials, bio monomers to bioplastics and low impact formulations. It has brought its materials to the market through applications that require biodegradability in composting facilities and soil.
BioBag’s downstream focus have made it a pioneer in the development and distribution of a wide range of compostable applications and support services in the countries of Scandinavia. 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.
Moreover, as a marketing and distribution company, BioBag brings to the deal service capabilities not currently available to Novamont.
Catia Bastioli, CEO at Novamont commented that 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’.
Novamont’s growth strategy over the past decade has mainly focussed on autonomous growth, through the regeneration of obsolete industrial sites. The present transaction will allow Novamont to further expand its compostable bioplastics business into Northern/Eastern Europe, North America and Australia.
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.