Hygiena to Acquire Food Safety Diagnostics Business from DuPont
Leading microbiology and life sciences company to combine with global microbial detection and diagnostics business
CAMARILLO, Calif., and WILMINGTON, Del., Dec. 14, 2016 – DuPont Nutrition & Health and Hygiena, a Warburg Pincus portfolio company that specializes in rapid food safety and environmental sanitation testing, announced today that Hygiena will acquire DuPont’s global food safety diagnostics business. The acquisition includes all of DuPont Diagnostics business assets, including the BAX® and RiboPrinter® Systems and associated test kits; a global and technically trained sales, R&D and manufacturing organization; and in-house production capacity. The business was formed by DuPont in 1992 as Qualicon, and Hygiena will retain the Qualicon name. The transaction is expected to close in the first quarter of 2017, pending customary closing conditions, including regulatory approvals. Financial terms of the agreement were not disclosed.
DuPont Diagnostics provides innovative, science-based microbial detection and monitoring products that identify and characterize pathogens and other unwelcome organisms in food ingredients, finished products and production environments. Shortly after the formation of the business, DuPont pioneered Nobel-prize-winning PCR technology in commercial food safety testing with the BAX® System for pathogen detection. Today, the BAX® System has been adopted as the leading detection method by food manufacturers, food quality laboratories and governments around the world. Hygiena plans to invest behind new product development to continue the DuPont Diagnostics history of market-leading innovation.
“The combination of DuPont Diagnostics and Hygiena will create a broad food safety diagnostics company that can better serve our customers,” said Steve Nason, chief executive officer of Hygiena. “The combined company’s microbiology products will cover the full manufacturing process, from in-process environmental tests to finished product tests. In addition, the combination increases our customer service presence in the United States and internationally, which will allow us to further enhance our research and development efforts and support to our combined customer base.”
“This transaction is a strategic business decision that will allow DuPont Nutrition & Health to focus on growth opportunities that are more closely aligned with our core portfolio of specialty food ingredients,” said Matthias Heinzel, president, DuPont Nutrition & Health. “We believe that the Diagnostics business is an excellent strategic fit with Hygiena. Together they will be better able to offer greater opportunities for growth and investment in innovative solutions for the global pathogen testing industry.”
Hygiena is a microbiology and life science company that serves industrial food processors, healthcare institutions, life science researchers and other industries. Hygiena manufactures and sells a broad range of rapid hygiene monitoring systems, environmental collection systems and rapid dilution devices, including its market leading ATP (adenosine triphosphate) testing system. Its products are distributed in over 80 countries worldwide. Hygiena is committed to the mission of providing customers with innovative technologies that are simple, easy to use and reliable, with excellent customer service and support.
In 2016, Hygiena received an investment from Warburg Pincus, a global private equity firm focused on growth investing, to help further this mission. Warburg Pincus’ investment in Hygiena was driven by the firm’s thesis that the company represents an excellent platform to consolidate the highly fragmented food and life sciences testing and environmental sanitation industry. Stephanie Geveda, managing director, Warburg Pincus, said, “DuPont Diagnostics is a perfect fit within Hygiena’s growth strategy. We are excited to invest in and build upon the business’ portfolio of leading diagnostic products and capabilities.”
Hygiena LLC (www.hygiena.com) is a microbiology and life science company that serves industrial food processors, healthcare institutions, life science researchers and other industries. Utilizing advanced technologies and patented designs, Hygiena manufactures a broad range of rapid hygiene monitoring systems, environmental collection systems, rapid dilution devices, and more. All products are made under strict GMP standards in its ISO-certified facility, ensuring excellent product quality and reliability. Hygiena is committed to the mission of providing customers with innovative technologies that are simple, easy to use, and reliable, with excellent customer service and support. Hygiena is headquartered in the United States in Camarillo, Calif., with satellite offices in the United Kingdom and China. With over 100 distributors in 80 countries worldwide, Hygiena products span the globe.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $40 billion in private equity assets under management. The firm’s active portfolio of more than 120 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 15 private equity funds, which have invested more than $58 billion in over 760 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com.
DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, NGOs, and thought leaders we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont, please visit www.dupont.com.
Forward-Looking Statements: This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. Forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events which may not be realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond the company’s control. Some of the important factors that could cause the company’s actual results to differ materially from those projected in any such forward-looking statements are: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; ability to respond to market acceptance, rules, regulations and policies affecting products based on biotechnology and, in general, for products for the agriculture industry; outcome of significant litigation and environmental matters, including realization of associated indemnification assets, if any; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war, natural disasters and weather events and patterns which could affect demand as well as availability of products for the agriculture industry; ability to protect and enforce the company’s intellectual property rights; successful integration of acquired businesses and separation of underperforming or non-strategic assets or businesses; and risks related to the agreement entered on December 11, 2015, with The Dow Chemical Company pursuant to which the companies have agreed to effect an all-stock merger of equals, including the completion of the proposed transaction on anticipated terms and timing, the ability to fully and timely realize the expected benefits of the proposed transaction and risks related to the intended business separations contemplated to occur after the completion of the proposed transaction. The company undertakes no duty to publicly revise or update any forward-looking statements as a result of future developments, or new information or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
# # #
The DuPont Oval logo, DuPont™ and all products, unless otherwise noted, denoted with ™, ℠ or ® are trademarks or registered trademarks of E.I. du Pont de Nemours and Company or its affiliates.