The French ingredient supplier’s buy-out of the US cranberry extract specialists is the fourth carried out by the firm in the last year.
The buy-out will see Decas Botanical Synergies (DBS) remain as a separate business entity to Naturex, however the group will aim to integrate sales and research efforts.
“The question will be more of intergrating sales organization and developing new products with the DBS team,” Naturex CEO Thierry Lambert told NutraIngredients.
Lambert explained that DBS have a great expertise in developing, formulating and marketing Cranberry extracts and powders, “which fits nicely with our range of products for health.”
He said the acquisition will offer growth to Naturex’s already strong presence in the US markets, but will also open up opportunities to take the US focused Decas business to a wider audience:
“We thought Naturex would provide a worldwide sales network and platform for these very American products,” said Lambert. “We think we can take these products and give them a more global reach, introducing them into Russia and Asia, for example.”
The acquisition is the fifth US based buy-out for the French group – and is the first since acquiring Chart Corporation in 2007. The acquisition also ties in nicely with the previous buy-out of ingredient spcialists Burgundy, who also specialize in cranberry extracts.
Only a few years ago Burgundy was a small but competitive rival to DBS in the cranberry space, said Lambert. Now, with both companies coming under the Naturex umbrella, the group will be hoping to combine expertise and efforts in the future.
"This operation allows us to become the leader in cranberry extracts and is an excellent opportunity to strengthen our position in the development and sales of technical solutions with high-value added offerings for our customers” Lambert added.
The CEO said he is confident the freshly acquired know-how from DBS, in addition to existing ideas in the Naturex and recent buy-out Burgundy will bring exciting new products to the market in the next few years.
“They have some good products and a great team, so let’s cross our fingers,” he said.
Doug Klaiber, CEO of Decas Botanical Synergies, said the firm is ‘very pleased’ to join the Naturex Group and looks forward to playing an active role in this new organisation.
“The expertise of Naturex's scientific teams combined with the strength of its sales network will allow us to accelerate the development of our innovative and clinically substantiated product range, through a differentiating offering," he added.