Astaxanthin business boost: Solabia Group acquires microalgae innovator Algatech
23 May 2019 --- Solabia Group has acquired Algatech Ltd., a global innovator in the development, cultivation and commercialization of ingredients delivered from microalgae. Solabia, a family-owned company working closely with its minority partner TA Associates, specializes in biotechnology, fine chemicals and plant extraction technologies. Solabia provides a range of active ingredients used by the cosmetics, pharmaceutical, diagnostic and nutrition industries worldwide. Algatech will reportedly become the centerpiece of Solabia’s nutrition division. Financial terms of the transaction were not disclosed.
Founded in 1998 and located in the Arava desert in southern Israel, Algatech is an innovator in the microalgae industry.
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,” he added.
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 reportedly realized 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 centerpiece 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.
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.
Commenting on the acquisition, Hagai Stadler, Chief Executive Officer of Algatech, said:
“Algatech’s acquisition by Solabia marks a significant milestone for the cCompany and all of the people behind its success to date and is an important step towards realizing 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 organization with an extensive global footprint, a shared commitment to innovation, research and development, and an unwavering focus on utilizing the benefits of microalgae to elevate the health of all of us.”
Algatech has announced a number of launches this year. In February, Algatech launched AstaPure Arava, an all-natural, algae complex that contains naturally occurring constituents of the Haematococcus Pluvialis algae. The company claims that this species of microalgae is the “richest known source of astaxanthin” and its properties are supported by research from NIS Labs, a research institute based in the US.
In April, the company launched the newest product within its astaxanthin product line – AstaPure EyeQ – a microencapsulated, cold water-soluble, 2 percent astaxanthin powder, marketed as promoting superior vision functionalities.
The transaction represents a full realization of UK-based investment firms Grovepoint Capital and JCA Charitable Foundation in Algatech, while Kibbutz Ketura will retain a minority share.
“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,” says Sir Stephen Waley-Cohen, Chairman of JCA Charitable Foundation. “Realizing our investment will enable us to support many more projects in the rural periphery of Israel.”
