ArcticZymes Technologies — M&A Activity 2020

Dec 14, 2020

ArcticZymes Technologies divests Biotec BetaGlucans subsidiary to Lallemand

ArcticZymes Technologies divests Biotec BetaGlucans subsidiary to Lallemand

Tromsø, Norway, 14. December 2020. ArcticZymes Technologies ASA (AZT) has today

entered into a Share Purchase Agreement (SPA) with Lallemand Inc's subsidiary,

Danstar Ferment AG for the divestment of AZT's Biotec BetaGlucans AS subsidiary

(BBG)

·

The transaction is based on an Enterprise Value of NOK 70 Million payable in

cash at closing - expected end of December 2020 and which will be subject to

customary closing accounts adjustments

· Divestment supports AZT's strategy to focus exclusively on its profitable

enzyme business and strengthens its cash position to expedite organic and

inorganic growth options

Under the terms of the SPA, Lallemand will acquire all of the BBG assets and

associated intellectual property including the M-Gard[®], SBG[®], M-Glucan[®]

and Woulgan[®] product portfolios, and will take-over the manufacturing of beta

-glucans in the Nordøya, Tromsø manufacturing facility. The BBG business is an

excellent strategic fit for Lallemand, a global leader in the development,

production and marketing of yeast, bacteria and specialty ingredients.

In December 2019, AZT announced that it would seek to divest the Woulgan[®]

wound care business. Despite an extensive search process, no suitable purchaser

or partner was identified who was willing to acquire all or part of this

standalone business.

However, AZT did receive several proposals to acquire the entire BBG business

including the Nordøya manufacturing facility. Lallemand with production plants,

distribution centres and offices in over 50 countries was the most competitive

and qualified bidder with the expertise to fully integrate and develop the BBG

product portfolio and business whilst ensuring continuity of supply to BBG's

customers.

Divesting the BBG business will enable AZT to focus all its strategic attention

on developing its enzyme business. Significant infrastructure and research and

development investments will be made in 2021/2 to expedite organic growth of the

enzyme portfolio. In addition, inorganic growth opportunities will be sought

through merger and acquisition.

AZT CEO, Jethro Holter said:

"We are delighted to divest BBG to Lallemand who is ideally suited to take over

this business. AZT will subsequently become a pure enzyme company with all

efforts focused towards expanding it enzymes portfolio through organic and

inorganic growth initiatives."

President and CEO of Lallemand Inc., Antoine Chagnon commented:

"Our acquisition of the Biotec BetaGlucans business will broaden our beta

-glucans product portfolio as well as our access to leading technologies within

yeast-based ingredients. We look forward to offering our customers in both human

and animal nutrition sectors innovative products from Biotec BetaGlucans. We are

delighted to have secured the pharma certified Tromsø plant, our first

production facility in Norway."

-ENDS-

For more information, please contact:

ArcticZymes Technologies

Dr. Jethro Holter, CEO

Tel: +47 46 85 91 46

email: jethro.holter@arcticzymes.com

Lallemand

Lars Asferg, President, Lallemand Bio-Ingredients

Tel: +41 (79) 56 66 059

email: larsferg@lallemand.com

About ArcticZymes Technologies ASA

ArcticZymes Technologies is a Norwegian life sciences company focused on the

development, manufacturing and commercialization of novel recombinant enzymes

for use in molecular research, In Vitro Diagnostics (IVD) and therapeutics.

Listed on the Oslo Stock Exchange since 2005 originally under the [Biotec]

ticker, as Biotec Pharmacon. The company rebranded as ArcticZymes Technologies

in 2020 under the [AZT] ticker. Its headquarters are based in Tromsø, Norway, at

the SIVA Innovation Centre.

ArcticZymes Technologies' unique IP and capabilities are protected via a large

portfolio of patents.

For more information, please visit the website: www.arcticzymes.com

About Lallemand Inc.

Lallemand is a family-owned business, headquartered in Canada, whose focus is on

the development, production and marketing of yeasts, bacteria and enzymes

solutions across the baking, food ingredients, human and animal nutrition and

health, crop protection/nutrition, oenology, brewing, alcohol and biofuel

sectors. Lallemand is present in more than 50 countries, operates more than 45

production plants and has circa 4,500 employees.

For more information, please visit the website: www.lallemand.com