has acquired BioBag Group, a Norway based supplier of low-impact solutions for waste collection and packaging. The acquisition will allow Novamont to benefit from BioBag’s highly specialized independent distribution in areas where the buyer is less present.
Collaboration to Provide Complete Set of Solutions
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. 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:
- 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 develops and distributes a wide range of compostable applications starting from the Scandinavian countries and specializes 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 maximize 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.
Expansion in compostable Bioplastic Business
This transaction will allow Novamont to
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 says, “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
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.