Solabia Group announced that it has acquired Algatech Ltd., a global leader in the development, cultivation and commercialisation of ingredients delivered from microalgae and used by leading food supplement, food and cosmetic brands worldwide. The acquisition represents a growing awareness of the opportunities presented by microalgae-based products, which is currently one of the most promising long-term, sustainable sources for food, cosmetics, chemicals and other co-products.
Solabia, a family-owned company working closely with its minority partner TA Associates, is a global actor 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.
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.
Financial terms of the transaction were not disclosed.
