Novonesis to acquire MicroBioGen, strengthening industrial yeast portfolio

DENMARK – Novonesis has signed an agreement to acquire Australian biotechnology company MicroBioGen, strengthening its capabilities in industrial yeast technologies and expanding its portfolio of biological solutions for the global bioethanol industry.

The transaction builds on a long-standing partnership between the two companies that began in 2013, when Novonesis first invested in MicroBioGen. 

The Danish biosolutions company currently holds a 23% stake in the Australian firm. Financial terms of the acquisition were not disclosed.

MicroBioGen specialises in developing advanced yeast strains for industrial applications, particularly bioethanol production, where improved yeast performance can enhance fermentation efficiency, increase ethanol yields and reduce production costs.

The acquisition aligns with Novonesis’ 2030 growth strategy, which prioritises investment in innovation and biological technologies to expand its market position across industrial biotechnology.

“This acquisition marks an additional step in our 2030 strategy. It strengthens our yeast capabilities, strengthens our R&D capabilities, and reflects our disciplined investment focus to drive growth,” said Ester Baiget, Chief Executive Officer of Novonesis.

As a biology-focused company, Novonesis invests approximately 10% of its annual sales in research and innovation, with expertise spanning microbiology, industrial fermentation and enzyme technologies used across food, agriculture, bioenergy and industrial applications.

The company said integrating MicroBioGen’s technology will further strengthen its scientific capabilities and accelerate the development of next-generation biosolutions for industrial customers.

“We see MicroBioGen as a perfect match, building on more than a decade of close collaboration, and we look forward to integrating their technology into Novonesis,” said Claus Crone Fuglsang, Chief Scientific Officer at Novonesis.

“With the acquisition, we will continue to strengthen our capabilities and develop the biosolutions our customers need.”

Novonesis added that it will continue supporting MicroBioGen’s existing commercial partners and ensure continuity across ongoing collaborations following completion of the transaction.

MicroBioGen Chief Executive Officer and Co-founder Geoffrey Bell described the acquisition as the next logical step in the companies’ long-term relationship.

“Joining Novonesis is a strong fit for MicroBioGen and its employees. After more than a decade of close collaboration, we could not think of a better home for the company,” Bell said.

Acquisition reinforces focus on bioethanol innovation

The deal reflects growing investment in biological technologies designed to improve industrial fermentation processes, particularly as biofuel producers seek higher production efficiency and lower operating costs.

Advanced yeast strains play a critical role in bioethanol manufacturing by improving sugar conversion rates, increasing tolerance to process stresses and enabling more consistent fermentation performance.

By combining MicroBioGen’s yeast engineering expertise with Novonesis’ global research, manufacturing and commercial capabilities, the acquisition is expected to strengthen the company’s position in the industrial biotechnology and renewable fuels sectors.

Completion of the transaction remains subject to customary regulatory approvals, including clearance from the Australian Competition and Consumer Commission (ACCC). 

Novonesis has not disclosed an expected closing date.

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