Algatech employees at Kibbutz Ketura.
(photo credit: BENNY DOUTSH)
Solabia Group, a French maker of natural active ingredients for the cosmetic, pharmaceutical, and microbiology industries, said on Wednesday it acquired Israel’s Algatech.
Terms of the transaction were not disclosed.
Algatech produces ingredients delivered from microalgae and used by food supplement, food and cosmetic brands.
Algatech said it has had high double-digit top line growth over the last several years and this is expected to accelerate with Solabia’s backing.
The strategic investment from Solabia will support Algatech’s focus on research and development, as well as the expansion of production capabilities, it said.
UK-based investment firms Grovepoint Capital and JCA Charitable Foundation have sold their stake in Algatech while Kibbutz Ketura will retain a minority stake in the company, which will become part of Solabia’s nutrition division.
“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,” it said.