PARIS–(BUSINESS WIRE)–Solabia Group (“Solabia”) today announces that it has acquired Algatech
Ltd. (“Algatech” or “the Company”), a global innovative leader in the
development, cultivation and commercialisation of ingredients delivered
from microalgae and used by leading food supplement, food and cosmetic
brands worldwide. Solabia, a family-owned company working closely with
its minority partner TA Associates, is a global leader in 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 leading innovation in the microalgae industry and is one of
the very few companies in the world to have perfected commercial-scale
production at the very highest standard. Algatech’s mission is to unlock
and share the immense power of microalgae by bringing algae-based
products to market and continuing to explore its limitless and
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 complete oversight and 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 leading 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.
The transaction represents a full realisation of UK-based investment
firms Grovepoint Capital and JCA Charitable Foundation in Algatech,
while Kibbutz Ketura will retain a minority share.
Commenting on the acquisition, Hagai Stadler, Chief Executive Officer
of Algatech, said:
“We are excited to announce Algatech’s acquisition by Solabia. It
marks a significant milestone for the Company and all of the people
behind its success to date and is an important step towards realising
our mission to unlock the power and share the benefits of microalgae
with the world. Together with Solabia, we are poised to extend the
Algatech growth story as part of a larger organisation with an extensive
global footprint, a shared commitment to innovation, research and
development, and an unwavering focus on utilising the benefits of
microalgae to elevate the health of all of us.
“I am thankful for the hard work and dedication of our employees, and
the incredible support of our previous investors Grovepoint Capital and
JCA Charitable Foundation over the past six years.”
Gerard Josset, Chief Executive Officer of Solabia Group, commented:
“Algatech’s pioneering R&D, impressive manufacturing facilities,
market leading 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.
“The strength of Algatech’s team of experts is undeniable and we are
excited and honoured to have them join the Solabia Group.”
Bradley Fried, Co-Founder and Partner at Grovepoint Capital, added:
“When we invested in Algatech six years ago, we recognised growth
opportunities in the microalgae industry and saw significant potential
for Algatech as a leader in that space. The talented team of experts at
Algatech have successfully managed to harness the power of microalgae
and its related applications, bringing the company’s products to an
increasing customer-base across the world. We have been proud of
Algatech’s growth and development, and wish Solabia and the company
every success in its next stage of development.”
Sir Stephen Waley-Cohen, Chairman of JCA Charitable Foundation, said:
“We have been involved since the very start of Algatech, a
ground-breaking project leveraging science from Ben Gurion University to
create innovative products in the desert. We are very proud of the high
level of employment achieved at Kibbutz Ketura, and the world-beating
products which are developed at Algatech. Realising our investment will
enable us to support many more projects in the rural periphery of
Israel.”
Advisors
Peter Sugarman from Yigal Arnon & Co. served as legal counsel to
Algatech and Asaf Nahum from Herzog Fox & Neeman served as legal counsel
to Solabia in Israel. Mishcon de Reya served as legal counsel to
Algatech and Latham & Watkins served as legal counsel to Solabia in the
UK.
– ENDS –
Notes to Editors
About Algatech
Algatech is a world leader 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 immense health benefits
of these vital plants through meticulous R&D and cutting-edge
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 productisation 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. Algatech also
recently started to market FucoVital™, from the microalgae
Phaeodactylum, a proprietary composition for targeting liver health and
metabolism syndrome. Algatech has an ambitious product pipeline that
will add significant value to the wellbeing of humans and animals around
the world. Algatech plans to introduce additional novel ingredients in
the coming years and bring new ingredients sourced from microalgae to a
market currently worth 2 billion USD. More information about Algatech
can be found at www.algatech.com
About Microalgae
At the very basis of the food chain and containing almost all the basic
nutritional elements of life, microalgae are recognised as one of the
most promising long-term, sustainable sources for food, health,
chemicals and other co-products. While there is substantial evidence for
the health benefits of algae-derived food products, from improving
heart, eyes and brain health to boosting immunity and improving skin
health, algae are increasingly being consumed for functional benefits
beyond the traditional considerations of nutrition and health. Not only
has microalgae become a fundamental component of some of the world’s
most common and widely used consumer products, such as cosmetics and
food supplements, but it also has the potential to address the growing
population’s need for a more sustainable food supply, specifically with
respect to vegan sources of protein and high value lipids demands.
About Solabia Group
Solabia is a vertically-integrated manufacturer of natural active
ingredients for the cosmetic, pharmaceutical, nutraceutical and
microbiology industries. Solabia also produces culture media,
supplements, detection kits and peptones for the food testing and
pharmaceutical 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. The
company’s products are principally used in the agro-food industry to
detect bacteria, such as salmonella, legionella or listeria. More
information about Solabia can be found at www.solabia.com.
Contacts
Algatech
Hawthorn Advisors
Zinka MacHale / Hanna
Skeppner
algatech@hawthornadvisors.com
+44
(0)20 3745 4960