The acquisition enabled Novamont to benefit from Biobag’s highly specialised distribution network in markets where Novamont had a more limited presence. Together, the two companies aimed to offer a more complete range of solutions and build long-term alliances with stakeholders including retailers, municipalities and local communities. They also planned to develop further demonstration projects supporting the separate collection and treatment of organic waste, particularly in North America, the Nordic countries, Eastern Europe and Australia.
The transaction was an important step in a collaborative journey that had begun 25 years earlier. Novamont’s original vision in the 1990s was to build an integrated value chain for bioplastics and biochemicals linked to the development and improvement of separate organic-waste collection. This became part of what is now known as the circular Bioeconomy, to which both Novamont and Biobag have contributed.
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.
