Fermenta Biotech jumps 5 per cent after its US subsidiary acquires majority stake in AGD Nutrition LLC
Fermenta Biotech today announced that its wholly-owned subsidiary, Fermenta Biotech USA LLC (FBU), Wilmington, DE, has acquired a 52 per cent stake in a US-based vitamin company, AGD Nutrition LLC (AGD).
Reacting to this, the stock of Fermenta Biotech today jumped 5.74 per cent and made an intraday high of Rs 324.90 per share.
The acquisition will combine the strengths of both the companies that will result in synergies bringing in greater operational capabilities to enhance Fermenta Biotech's footprint in the US market.
Fermenta Biotech's strength lies in manufacturing & customer-driven innovation while AGD’s strength lies in distribution. AGD being an established player in the vitamin market, will help Fermenta Biotech in gaining greater customer access through its deep understanding of the North American market.
Fermenta Biotech is one of the leading manufacturers of Vitamin D3 globally. It also possesses expertise in integrated biotechnology solutions such as enzymes for antibiotic synthesis and other niche APIs. It supplies products to over 300 customers across 50 countries.
AGD Nutrition LLC (AGD) possesses expertise in animal nutrition, specifically, ingredients to feed applications. It is also a distinct player in the food & dietary supplements domain across North America.
At 12.40 pm today, the share of Fermenta Biotech was trading at Rs 319.95 per share on BSE, up by 4.13 per cent.