Frutarom has acquired 50% of biotech company Algalo for around $2.6 million which will fund the building of a facility that will specialise in the cultivation, harvesting and processing of algae.
Frutarom has begun 2016 like it finished 2015 – on the acquisition trail – with the purchase of 50% of biotech company Algalo for around $2.6 million which will fund the building of a facility that will specialise in the cultivation, harvesting and processing of algae. Frutarom will have exclusive worldwide marketing rights for Algalo products."The investment in Algalo is part of a broad strategic move by Frutarom to reinforce its position and standing as a leading and innovative global supplier of natural specialty products and functional food ingredients in the fields of taste and health which already now make up over 75% of Frutarom's activity,” said Ori Yehudai, President and CEO of Frutarom Group. “The technology developed by Algalo for cultivating, harvesting and processing algae expands Frutarom's internal research and development capabilities for producing active ingredients from algae, a field in which we are already active, and provides an innovative platform and an additional growth engine for expanding Frutarom's diverse product portfolio in the growing field of natural specialty ingredients. We will work towards leveraging the cross-selling opportunities arising from this investment by expanding Frutarom's product portfolio and technological abilities and by presenting Algalo's innovative products to our thousands of customers worldwide.”"The size of the algae-based ingredient market is estimated to be hundreds of millions of dollars and has enjoyed double-digit growth over recent years .We foresee the rapid growth in this market continuing in coming years in light of consumer trends towards healthier and more natural products that drive the food, nutritional supplements and cosmetics companies to be innovative in developing natural ingredients and efficient in their production processes and cost structure," continued Yehudai."Frutarom believes that biotechnology represents the next generation in the development and production of innovative natural ingredients for the industries which it serves, and the Company intends to continue expanding its capabilities in this area by intensifying investment in R&D within its laboratories as well as through additional investments and joint ventures with research institutions, universities and startup companies to which Frutarom can contribute from its experience in applied R&D, its industrial manufacturing and from its global deployment in over 150 countries with sales to more than 20,000 customers including leading global companies in foods and beverages, nutritional supplements, pharmaceuticals and cosmetics," concluded Yehudai.