The Danish holding company Novo A/S, which is the majority shareholder of Novo Nordisk and Novozymes, has announced plans to make a DKK 20bn (USD 4.3bn) acquisition in the healthcare industry in partnership with a capital fund, writes financial daily newspaper Børsen. The investment will function as a third business arm in Novo A/S, which is owned by the Novo Nordisk Foundation.
Henrik Gürtler, managing director of Novo A/S says that the company must be at least of a similar size as Novozymes, because Novo Nordisk is growing so rapidly that otherwise the new entity would not be visible.
Novo A/S is investing DKK 500m (USD 106.8m) annually in venture capital for biotech companies as well as in securities. The company's financial strength has however increased so significantly, that the focus is now on strategic investments.
"We have gone from having DKK 300m (USD 64.1m) in 2000 to DKK 8bn (USD 1.7bn) today, and if this trend continues as we think it will, then we are already now in a situation where we could make an acquisition of up to DKK 20bn. This will be our agenda for the next couple of years," says Gürtler, adding that whatever Novo A/S does, it must not get in the way of Novo Nordisk or Novozymes, and that an acquisition will be outside the two companies' business areas, but in the healthcare sector.
The objective is to make the investment in partnership with a capital fund to get expertise in acquisitions and turnaround of companies on board.