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.
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. 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.
