Italy-based biochemicals and compostable bioplastics producer Novamont has acquired Norway-based packaging company BioBag Group, who specialises in low-impact solutions for waste collection and packaging, for an undisclosed amount.
This acquisition will allow Novamont to benefit from BioBag’s independent distribution in areas in which Novamont did not previously have a presence. BioBag’s marketing and distribution expertise will strengthen Novamont’s service capabilities in the supply chain.
Novamont said in a statement: “The transaction is an important step forward in a collaborative journey that began twenty-five years ago. Novamont’s original vision in the 1990s was to build an integrated value chain for bioplastics and biochemicals linked to initiating and improving the separate collection of organic waste. This became the starting point for what is now called the circular bioeconomy to which both Novamont and BioBag have made important contributions.”
The law firms involved in assisting the acquisition were Hi.Lex and Hjort for Novamont and Bryan Garnier and Wiersholm for BioBag.
Why was this acquisition made?
As well as enabling Novamont to strengthen its presence globally, this acquisition was made to create long-lasting alliances with key stakeholders, such as retailers, to build more projects that enhance separate organic waste collection and composting systems in North America, Scandinavia, Eastern Europe and Australia.
Novamont and BioBag compliment each other as Novamont is focused upstream, developing its Mater-Bi supply chain which ranges from agricultural raw materials, bio monomers and bioplastics, to low-impact formulations. BioBag is focused more downstream, developing and distributing a wide range of compostable applications.
This acquisition helps BioBag as it has developed an e-commerce platform as a market channel for its products and applications, which is now set to expand as a result of Novamont’s acquisition and upstream integration.
Response to the deal
Novamont 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 CEO Kjell Ivar Bache is very pleased with the new owners and sees the acquisition as a win-win, saying: “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!”