Advancing algae-based products: Sapec acquires 31 percent of Algaia shares

25 Mar 2019 --- French biomarine company Algaia has announced the acquisition of about 31 percent of its shares by Sapec sgps and its controlling shareholder, the Velge family, by the purchasing of Demeter & Cap Decisif stakes. Maabarot Products Ltd, SuperNova Invest and Algaia management will maintain their respective stockholding positions. Details of the transaction were kept confidential.

The potential for algae-based products is vast, notes Algaia’s CEO, Fabrice Bohin, while its traditional largest market – food – presents huge opportunities. Predominantly, these lie in seaweed extracts which help to reduce the fat or sugar content of food products. In addition, new spaces are opening up in the cosmetic, pharmaceutical and animal health categories, he explains.

Algaia SA is an established player in the field of specialty seaweed extracts with strong R&D and production capabilities. Last year, most of its revenues were generated in food, personal care and nutraceutical applications, the company notes. 

“We now have a pool of shareholders combining expertise in ag-tech, food, nutraceuticals and life science which is totally in line with Algaia’s strategy and markets. Their understanding of market dynamics and their network, will, no doubt, represent a solid support to Algaia’s sustainable growth. Each of them also has significant financial resources that could help to fuel our ambitious growth plan,” Bohin tells NutritionInsight.

Since the divestiture in 2016 of Sapec Agro and Tradecorp’s Agro Business to private equity firm Bridgepoint for an enterprise value of more than €450 million (US$509 million), Sapec’s shareholders achieved a public repurchase process to make the group 100 percent privately owned. Since then, the company has pursued a strategy to re-deploy its cash positions.

“Our investment in Algaia is part of an overall strategy to develop in businesses where we see significant growth opportunities,” comments Antoine Velge, Sapec’s CEO. “Algae-based products correspond to multiple market demands, all looking for more natural and sustainable solutions. During the due diligence process, we were impressed by Algaia’s vision, people, outstanding assets, innovation capabilities and execution drive. We share with Maabarot and SuperNova similar values and we are excited to start contributing to the company’s development,” Antoine added.

Algaia owns a novel and proprietary technology allowing the biorefinery of brown algae not only into alginates but also in other compounds such as biostimulants for the crop nutrition industry. 

The company’s facility is located in Brittany (France) next to abundant renewable fresh brown seaweed biomass, enabling the company to get sustainable and reliable supply. Algaia is the world’s largest buyer of French seaweed, with about 40,000 tons being transformed every year in its Lannilis facility. Last year, a new specialty seaweed extract production unit was installed at its Brittany facility, following an additional €4 million (US$4.5 million) in equity granted by the company’s main shareholder, Maabarot Products Ltd. 

“The vast experience of Sapec group and Antoine Velge, his CEO and shareholder, will be extremely valuable to Algaia’s development and Board of Directors,” says Eyal Shalmon, Algaia’s Chairman of the Board. “Algaia is uniquely positioned in the marine extract industry. The company benefits from outstanding, focused, R&D and production capabilities. It is able to co-extract multiple compounds out of the same natural marine raw material,” Shalmon concludes.