Evonik expands Care Solution business with US phytochemical company acquisition
21 Jan 2020 --- In a bid to expand its Care Solutions business line with a nutricosmetics component, Evonik has agreed to acquire Wilshire Technologies (Wilshire), a global supplier of phytochemicals and derivatives to the cosmetic and pharmaceutical industries. The acquisition is set to jumpstart Evonik’s focus on its “Health & Care” growth engine, established to meet the increasing demands from customers toward the global trend of bio-based products. The purchase transaction is set to be completed by the end of this month, with the purchase price undisclosed.
“The acquisition of Wilshire makes the technology of phytochemicals available to our customers and enables them to replace animal-originated sources with an Evonik product. This helps our customers to meet their sustainability goals and the increasing market demand for sustainable and plant based products,” Dr. Tammo Boinowitz, Senior Vice President and General Manager of Evonik’s Care Solutions Business Line, tells NutritionInsight.
Taking on Wilshire’s ten employees, Evonik’s acquisition marks a substantial addition to its sustainable cosmetic active ingredients portfolio. Dr. Boinowitz identifies the key trends driving innovation in the Health & Care sector as increasing health-awareness and lifestyle as well as bio-based products and environmentally-safe cosmetics.
Tammo Boinowitz and Joe San Filippo shake hands. Source: Evonik.“With our pharma polymers, oleochemicals and advanced biotechnology products, we are well positioned to benefit from these developments,” he notes.
Sustainable practices
Evonik’s Care Solutions business is set to increase its focus on sustainability as well as enhance its portfolio for its naturally derived excipients and intermediates for pharma and food applications.
“Our business is driven by global trends that revolve around people’s pursuit of a good and comfortable life. In many countries, they are increasingly seeking a more healthy and sustainable lifestyle. This has developed into a growth driver for many of our business activities,” Dr. Boinowitz explains.
Wilshire Technologies‘ product portfolio has a highly attractive strategic fit for Evonik, he maintains. “Right now, we are focusing on the seamless integration of the products in our existing portfolio for the cosmetics and healthcare markets. We are now able to offer a more diverse range of sustainable active ingredients.”
Clean label craze
From vitamins and minerals to energy ingredients and the sports nutrition sector, consumer demand for clean label offerings are flooding the nutrition industry. Moreover, incorporating more sustainable and renewable sources for cosmetic ingredients has become an important criterion for many personal care companies.
Operating in the omega 3 space, Evonik has previously placed sustainable business practices at the core of its company. Last July, Veramaris, a joint venture of Royal DSM and Evonik, opened a US-based manufacturing facility for the commercial production of omega 3 fatty acids from natural marine algae. The partners aimed to help alleviate the burden on the world’s ocean and fish supplies support sustainable salmon farming with the facility.
By Anni Schleicher
