Food safety multinational, Mérieux NutriSciences, has announced the acquisition of the food testing business ,Bureau Veritas, a French testing, inspection and certification (TIC) company. The acquisition, supported by the multinational’s parent company, Institut Mérieux, was made for an enterprise value of €360mn.
The acquisition will mean that Mérieux NutriSciences will have $1bn in revenue. It will also expand the multinational’s geographic footprint, with its operations extended now to 32 countries. This will mean doubling its presence in Asia Pacific and Canada, as well as giving it access to new regions with, the company suggests, significant growth potential.
The deal’s scope covers Bureau Veritas’s lab testing activities, including microbiological and chemical analysis and molecular testing.
The deal is expected to close at the end of Q4 in 2024, once closing conditions, including regulatory conditions in some geographies, have been met.
“The acquisition of Bureau Veritas’ food testing business marks a pivotal milestone for Mérieux NutriSciences. It will significantly enhance our ability to serve our customers, and ultimately increase our contribution to the safety, quality, and sustainability of global food systems. After closing of the transaction, together with the 1,900 future colleagues joining us from Bureau Veritas, we will be even stronger in fulfilling our purpose: ‘Better Food. Better Health. Better World,’” said Nicolas Cartier, CEO of Mérieux NutriSciences.
“We are pleased to partner with Mérieux NutriSciences, a leader in Food testing, whose global footprint and proven expertise is the perfect fit for our food business and would allow it to thrive and to contribute to make food systems safer, healthier and more sustainable,” added Hinda Gharbi, CEO of Bureau Veritas.
Mérieux NutriSciences is a key player in the $15bn global food TIC market, which, the company says, is experiencing an annual growth of around 5%.
Why did Mérieux NutriSciences acquire the business?
The acquisition “will reinforce our position as a global leader in food safety, quality, and sustainability,” Cartier told FoodNavigator. This transformational move aligns with our purpose and strategy, and strengthens our ability to contribute to safer and more sustainable food systems. With this, we gain critical mass in the $15bn food testing market, addressing rising consumer demand for safety, sustainability, and innovation.”
“This acquisition will create significant value for our customers by combining the considerable expertise of both companies. Particularly, Bureau Veritas has strong expertise in dairy, pet food, aquaculture, and agri, and the integration of Bureau Veritas food testing labs and experts will greatly enhance the 360° solutions we offer across the value chain.”