E-CO2 will be known as Alltech E-CO2 following the transaction.

The newly acquired business provides on-farm environmental and carbon assessments with a view to making its clients more efficient, profitable and sustainable.

It is expected to benefit from access to Alltech's global operations in 128 countries and its extensive team of scientists, nutritionists and marketing experts.

Alltech has three major bioscience centres, complemented by 19 formal research alliances with universities and institutions from the United States to China.

As part of the deal, E-CO2 will make its products and services available to all of Alltech's global offices.

"Carbon and water efficiency are a growing issue within both the food chain and everyday life," said Dr Pearse Lyons, president and founder of Alltech.

"The acquisition of E-CO2 underscores Alltech's long-term commitment to strong, sustainable global agriculture, as well as to food quality and safety for an expanding population."

E-CO2 managing director and co-founder Peter Darlington said: "Alltech believes that the future of agriculture depends on solutions that are beneficial to the animal, consumer and environment. And so do we; the E-C02 team believes passionately that reducing the environmental impact of agriculture involves simultaneously delivering value to the farmer."

Ed Barnes, head of corporate at DTM Legal, led the team acting for E-CO2 shareholders.

He said: "This transaction was a complex one in terms of the intellectual property rights involved, but ultimately a very satisfying one to conclude. The unique assessment products of The E-CO2 Project and Alltech's global presence will provide a fantastic platform to further develop the business."

Alltech is headquartered in Kentucky but Alltech UK, which was established in 1988, is based at Stamford in Lincolnshire.