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Mérieux NutriScience to acquire Bureau Veritas

Global food safety service provider Mérieux NutriScience will acquire French food testing business Bureau Veritas, a deal that extends its geographic reach and laboratory testing capabilities.

Bureau Veritas, which is currently headquartered in Neuilly-sur-Seine, near Paris, France, focuses its activities around microbiological and chemical testing, as well as molecular analysis. It has an annual turnover of €350 million and has a network of 34 laboratories, 1,900 staff and a global scale across 15 countries across Asia Pacific, Africa, and the Americas.

In a nod to the geographic expansion, Mérieux NutriScience executives have confirmed that they are in advanced discussions with New Zealand-based AsureQuality, a food assurance provider, to negotiate continuing the joint ventures that currently exist between Bureau Veritas and AsureQuality in Australia and Southeast Asia.

Extending its geographic and business capabilities

Mérieux NutriScience, which has headquarters in both the US and France, says that the acquisition will extend its operations to 32 countries, while doubling its presence in Canada and the Asia Pacific region for the global food testing inspection and certification market.

“The scope of this deal covers Bureau Veritas’ food laboratory testing activities – microbiological and chemical analysis, and molecular testing,” said Nicolas Cartier, CEO of Mérieux NutriScience. “This acquisition will reinforce our food testing capabilities and aligns fully with our existing strategy which relies on three pillars.”

Those three pillars include the goal to consolidate its leadership in food testing and further grow its footprint in pharma; to boost its profitable analytical testing services in microbiology and chemistry; and the overall ambition of becoming a “full solution provider”.

New opportunities in underexplored geographies

While the company is already a significant global player, the new projected annual revenue will be over $1 billion with the inclusion of the new business, a move that extends its reach in a number of new global markets, as well as reinforcing its footprint in others.

“The acquisition will allow us to serve more regions and offer local expertise in key markets,” said Cartier. “We will now be present in seven new countries: Vietnam, Thailand, Philippines, Malaysia, Morocco, Ecuador, and Japan, and we will reinforce our presence in the USA, Canada, Singapore, Australia, South Africa, Peru, Chile, and China.”

The transaction is expected to close by the fourth quarter of 2024, according to company executives, a process that will be finalised once all closing conditions have been fulfilled, including regulatory compliance in specific geographies.

“After the completion of the transaction, the integration will be approached on a country-by-country basis, ensuring that plans are tailored to each location. Bureau Veritas’ operations will be fully integrated into Mérieux NutriSciences,” said Cartier.

Mérieux NutriScience: acquisitions set to continue

Moving forward, Cartier says that the company has further ambitions for expansion, with the goal of being one of the dominant players in the global food and beverage testing inspection and certification market, a sector that was estimated to be worth $16.3 billion in 2023, according to VynZ Research.

“This acquisition is very much our priority today but moving forward we are likely to continue to pursue both organic growth and further acquisitions, as we look to solidify our leadership position in food safety, quality and sustainability globally,” said the CEO.

“Our long-term goals are to advance our purpose, ‘Better Food. Better Health. Better World’, and to deliver profitable and sustainable growth. By joining forces with the Bureau Veritas food testing activities, we will be better positioned to serve our mission of food safety, quality and sustainability. This acquisition will strengthen our ability to drive positive change within global food systems.”