BRAIN Biotech AG sells subsidiary L.A. Schmitt to a URI group company
- BRAIN Biotech AG further focusses business activities
- Transaction closed on September 26, 2022
- URI group expands its network to European production
BRAIN Biotech AG has announced the sale of its subsidiary L.A. Schmitt GmbH, Ludwigsstadt, to a company of the URI group, Seoul, Korea. The transaction has closed on September 26, 2022. L.A. Schmitt was founded in 1925 as a producer and contract manufacturer of cosmetics and wellness products. The company has been part of the BRAIN Group since 2009. Both parties have agreed on confidentiality about the transaction term details.
BRAIN Biotech AG has been increasingly focusing its business activities under the current leadership team on the areas of bioprocessing, producer strain development and enzyme development and production. These technology-driven solutions are based on the advanced genome engineering capabilities within the company and are also fueled by the company's proprietary genome editing platform.
Kim Dong-Myung, CEO of URI group company La Cultura Verde Ltd., says: "Building our business in the field of aesthetics began with the vision of delaying skin aging, preserving youth, and making happiness-inducing as well as healthy skin care available to the broader public. After 30 years of realizing this vision, today we are taking over the cosmetics manufacturer L.A. Schmitt, with 97 years of its very own tradition. We are excited to propel our vision of selling affordable skin care for all to the global market with products produced by L.A. Schmitt 'Made in Germany'. We will ensure strong competitiveness of L.A. Schmitt by focusing on high-quality products with affordable prices, aiming for market conform profit margins and thus offering employees long-term job prospects."
Lukas Linnig, CFO BRAIN Biotech, states: “We are constantly evaluating our company portfolio to determine whether BRAIN Biotech remains the best owner. With our increased focus on innovations which are driven by advanced technology, cosmetics formulation has become a lower priority for us. I am fully convinced that we have found a strong new owner for the L.A. Schmitt activities. In addition, the disposal will give BRAIN Biotech additional cash reserves to finance its ambitious growth targets in the areas of industry and science.”
Ivo Petschke, MD of L.A. Schmitt, adds: “First, I really want to thank BRAIN for the many years of strong cooperation and support. I also appreciate that we could jointly find a new owner which will allow us to further accelerate our future business development. Under the new ownership we have the opportunity to significantly expand sales and increasingly modernize our production infrastructure. We all at L.A. Schmitt look forward to support this new chapter in our corporate development.”
About BRAIN
BRAIN Biotech AG is a leading European supplier of bio-based products and solutions such as enzymes and proteins, microbial production strains, natural compounds and biotechnological solutions for more sustainable industrial processes. The company focuses on the fields of nutrition, health and environment.
BRAIN Biotech AG is the parent company of the international BRAIN Biotech Group. The Group's business activities are divided into three segments: The BioProducts segment comprises the product business with specialty enzymes and other proteins, for which the Group operates fermentation facilities in the United Kingdom and production facilities in continental Europe and the United States. The BioScience segment offers research-intensive custom solutions based on enzyme technology, strain development, bioprocess development and natural product screening. The BioIncubator segment conducts its own R&D projects or those initiated with partners with high value-added potential. A particularly promising incubator project is the development of the Company's own CRISPR-based gene editing technology platform, which is currently being established and expanded by Akribion Genomics (in foundation planning).
Through its own R&D activities, BRAIN Biotech Group is continuously expanding its product portfolio in the field of specialty enzymes and small molecules. The latter are the starting point for screenings, e.g. for novel drug candidates for pharmaceutical applications.
BRAIN Biotech AG has been listed on the Prime Standard of the Frankfurt Stock Exchange since February 9, 2016 (ticker symbol: BNN; securities identification number: ISIN DE0005203947 / WKN 520394). The company employs approximately 330 people and generated revenues of EUR 55,3 million in the fiscal year 2022/23.
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Disclaimer
This press release contains forward-looking statements. These statements reflect the current views, expectations, and assumptions of the management of BRAIN Biotech AG, and are based on information currently available to the management. Forward-looking statements are no guarantees of future performance, and entail both known and unknown risks as well as uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Numerous factors exist that could influence the future performance of and future developments at BRAIN Biotech AG and the BRAIN Biotech Group. Such factors include, but are not limited to, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, as well as other factors. BRAIN Biotech AG does not undertake any obligation to update or revise any forward-looking statements.