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CHR - Chr Hansen Holding A/S News Story

DKK573.2 3.8  0.7%

Last Trade - 05/05/21

Consumer Defensives
Large Cap
Market Cap £8.73bn
Enterprise Value £10.17bn
Revenue £796.1m
Position in Universe 81st / 1836

Natural Colors transaction closed

Wed 31st March, 2021 12:16pm
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Divestment of Natural Colors to EQT closed as of March 31, 2021

Chr. Hansen Holding A/S and EQT today announced the completion of the
transaction announced on September 26, 2020, whereby EQT and Chr. Hansen
Holding A/S entered into an agreement with the purpose of EQT to acquire the
Natural Colors division from Chr. Hansen Holding A/S.

The divestment follows the 2025 Strategy of Chr. Hansen becoming a
differentiated bioscience company with focus on the microbial and fermentation
technology platforms. The total consideration for the transaction is EUR 800
million on a cash and debt free basis which Chr. Hansen has already received.
Transfer of business activities is completed, however, the full legal
transition in a few countries will be finalized during the coming months.

Financial implications

The proceeds from the divestment will be used to reduce the leverage of Chr.
Hansen. Also, as announced in connection with the Annual General Meeting on
November 25, 2020, Chr. Hansen intends to pay out an extraordinary dividend at
least equal to a normalized ordinary dividend for 2019/20, and will initiate
the standard process for paying out extraordinary dividends. More information
on the timing of the extraordinary dividend can be expected in connection with
the Q2 announcement on April 15, 2021.

The one-off profits from the transaction, which is the difference between the
book value of the transferred assets and liabilities and the transaction value
received, will be accounted for as part of the profits from discontinued
operations in Q3. The impact is estimated to be around EUR 650 million after
taxes and transaction costs associated with the divestment.

The divestment covers business operations with asset transfers in more than 30
countries including transfer of 5 separate corporate entities and around 600
employees. Consistent with the transaction agreement, Chr. Hansen undertakes
to provide various transition services for a period of up to two years to
Natural Colors/EQT to ensure continuity of Natural Color business activities.
The costs associated with Chr. Hansen corporate activities in Natural Colors
that are not transferred to EQT will be partly covered by the fees from the
transition services agreements, and will not impact the guidance on EBIT
margin b.s.i. for this year.

*     No. 5 Closing of Natural Colors transaction
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