Leading global law firm Baker McKenzie advised global bioscience company Chr. Hansen on the carve out sale of its Natural Colors business to EQT IX fund in a deal worth EUR 800 million.

This agreement concludes the strategic review of Danish-headquartered Chr. Hansen’s portfolio announced in July 2020, where Chr. Hansen’s Board of Directors and the Executive Board decided to explore strategic options for the Natural Colors business as it does not share the microbial and fermentation technology platforms. The Company, which develops natural solutions for the food, nutritional, pharmaceutical and agricultural industries, believes that this carve-out transaction will allow them to focus on fulfilling the ambition of becoming a pure-play, microbial and fermentation company with industry leading, profitable growth.

The Baker McKenzie team was led by Corporate Partner Jannan Crozier, Antitrust & Competition Partner Gavin Bushell and Corporate Senior Associate Robert Gray.

Speaking after the transaction signed, Jannan Crozier said, “We are very pleased that we have been able to draw on our legal capabilities and strengths in advising on M&A and carve outs in order to assist Chr. Hansen on this strategically important divestment. This transaction continues to highlight the significant value creation that can be gained by companies from the successful execution of a carve-out."

Headquartered in Hørsholm, Denmark, Natural Colors is the leading developer and manufacturer of natural coloring ingredients, serving over 1,600 customers in the food and beverages industry. The Company is the global leader in the natural colorants industry in terms of innovation, application, formulation, product portfolio breadth and geographical reach. The Natural Colors Division employs approximately 650 people and has grown organically by around 9 percent per annum during the past five years up to 2018/19. The Company generated sales of EUR 224 million in 2018/19.

Gorissen Federspiel provided Danish law advice to Chr. Hansen and Goldman Sachs acted as exclusive financial advisor.
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