BRAIN Biotech : expands stake in successful enzyme producer Biocatalysts Ltd.

• BRAIN has acquired additional shares in Biocatalysts Ltd.
• Biocatalysts strong business trend
• Planned additional capacity expansion now targeted earlier

BRAIN Biotech AG has expanded its shareholdings in the successful enzyme producer Biocatalysts Ltd., Wales, to 82.2% by the purchase of additional shares from minority shareholders. Due to the strong business performance at Biocatalysts Ltd. current production capacity will be fully utilised although only coming on stream in early 2021. The 2nd phase of expansion is planned to be accelerated as a result.

BRAIN Biotech AG has purchased an additional 16.7% in Biocatalysts Ltd. as two minority shareholders have exercised their put option rights. BRAIN now holds a total of 82.2% (previously 65.55%) in the daughter company. The purchase price was GBP 3.9 million.

Biocatalysts is a global biotechnology company producing speciality enzymes at commercial scales for a variety of industries, including food, flavour, life science, and pharma. Biocatalysts offers both off-the-shelf enzyme products as well as customised enzyme discovery, development and manufacturing service. The company has grown strongly over the last years and the business generates solid profitability. In recent years, BRAIN has invested into the large scale fermentation capacities at Biocatalysts to pave the way for future growth and even stronger profitability. The business has demonstrated strength throughout the Corona pandemic and Brexit.

Rod Sears Black, MD Biocatalysts Ltd., says: 'We're happy about the confidence shown by BRAIN and the continued support from the group. Our strong market position in the production and distribution of enzymes combined with BRAIN's deep scientific base is a winning combination.'

Adriaan Moelker, CEO BRAIN Biotech AG, states: 'We are very satisfied with the growth rate and the business performance of the Biocatalysts team in Cardiff. It has been our stated intention to further strengthen the products business at BRAIN and Biocatalysts is at the centre of this strategy. The recently increased large scale fermentation capacity has triggered fast expansion of the business and we now look to accelerate further with our investment into additional production capacities. We will start a pre-engineering phase soon.'

Lukas Linnig, CFO at BRAIN Biotech AG comments: 'The execution of put option rights by two minority Biocatalysts shareholders has allowed us to increase our holding in this highly profitable daughter company. The earlier exercise is at more favorable terms for BRAIN which will allow us to release around EUR 3.0 million of provisional debt from our balance sheet and further strengthen our equity base. We ultimately aim to gain full ownership of Biocatalyts so we welcome the exercise of the put options. In addition, the ongoing buyout of minority shareholders will allow us to crystalize synergies within our BioIndustrial segment.'