Solabia has acquired Algatech, a global company active in the development, cultivation and commercialisation of ingredients delivered from microalgae and used by food supplement, food and cosmetic brands worldwide. Solabia, a family-owned company working closely with its minority partner TA Associates, is a global supplier active in the field of biotechnology, fine chemicals and plant extraction technologies, and provides a range of active ingredients used by the cosmetics, pharmaceutical, diagnostic and nutrition industries worldwide. Financial terms of the transaction were not disclosed.
Founded in 1998 and located in the Arava desert in southern Israel, Algatech is active in the microalgae industry and is one of the very few companies to have perfected commercial-scale production. Algatech’s mission is to unlock the power of microalgae by bringing algae-based products to market and continuing to explore its wide-ranging applications. Over the past two decades, the Company has grown to become one of the world’s largest photobioreactor facilities, and a leading biotech business in the nutraceuticals sector. Algatech has control of its value and supply chains – from research, science, IP and cultivation to product development, testing and marketing – and can deliver tailored end-to-end solutions to meet its customers’ needs. Algatech currently exports to more than 35 countries worldwide, serving brands across the nutrition, cosmetic and food and beverage industries.
Algatech has realised high double-digit top line growth over the last several years and this trajectory will accelerate with Solabia’s backing. The strategic investment from Solabia will support Algatech’s continued focus on R&D and product development, as well as the expansion of its production capabilities, enabling the Company to serve the increasing global demand for microalgae. Algatech will become the centrepiece of Solabia’s nutrition division and the combination will allow both companies to benefit from the combined network and expertise, as well as to access new marketing channels and an expanded customer base.
Gerard Josset, Chief Executive Officer of Solabia Group, commented:
“Algatech’s R&D, manufacturing facilities, product portfolio and established customer base brings the opportunity for Solabia to be present in both fields of macroalgae and microalgae whose futures are very promising. Following our acquisition of Algues & Mer in 2016, this investment will allow us to further strengthen our position in the nutrition and food supplement markets. We are looking forward to working with Algatech and its accomplished team to accelerate the growth of its current product portfolio, as well as to develop new algae-based products for the cosmetics and pharmaceuticals industries.
About Algatech
Algatech is a global company active in the research, cultivation and commercialisation of microalgae, one of the earliest life forms and a proven source of crucial nutrients. Based at Kibbutz Ketura in southern Israel, the Company’s mission is to unlock the health benefits of these vital plants through R&D and technology. The company currently exports its products to leading brands in more than 35 countries worldwide across the nutrition, cosmetics, food and beverages industries.
Since its inception in 1998, Algatech has collated a team of 70 global experts and pioneers in biology, engineering, science, production and technology, all passionate and committed to breaking new ground in the development and production of microalgae. From its state-of-the-art eco-friendly facility in Israel’s Arava Desert, the team has developed techniques to cultivate algae in over 600km of greenhouse-like glass tubes, a process operated entirely on renewable energy. The location’s harsh and stable climate, high year-round light intensity and clean, unpolluted air are critical to successful and sustainable algae production. The process is designed to mimic nature’s processes using solar energy and recycled wastewater, with the only waste produced being oxygen.
The near million different species of algae have the potential to be hugely valuable sources of ingredients, including proteins, omegas, vitamins, carotenoids and polysaccharides, but only a handful are currently commercialised. Leveraging its cutting edge eco-friendly technologies and state-of-the-art scientific methods, the Company has become the leading manufacturer and supplier of astaxanthin, one of the world’s most powerful antioxidants sourced from the microalgae Haematococcus pluvialis, which it markets as AstaPure Astaxanthin and sells as an active bulk ingredient to customers worldwide.
About Solabia Group
Solabia is a vertically-integrated manufacturer of natural active ingredients for the cosmetic, pharmaceutical, nutraceutical and microbiology industries. With six production facilities and multiple R&D centres, the company offers an extensive range of natural active principles and ingredients for the cosmetic, pharmaceutical and nutraceutical industries. Solabia is a major player in the global cosmetic ingredients market with presence in the Americas, Europe, Asia and Africa. Under the brand Biokar, Solabia is also active in the development, production and selling of raw materials and of culture media, supplements and detection kits for microbiology laboratories.
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