LycoRed strengthens position in US carotenoid market
the US with the acquisition of ingredient supplier H.Reisman
Corporation - allowing it to meet the demands of North American
clients more quickly.
The US market is a key focus for the Israeli dietary supplement and functional food ingredient supplier.
The purchase of H.Reisman, a natural carotenoid and antioxidant ingredient manufacturer, marks the firm's second major move into the North American market in recent months. In November, it bought Buckton Scott Nutrition's US division.
"This is part of an industry-wide consolidation towards single suppliers of multiple value-added ingredients and services," said LycoRed president and CEO Morris Zelkha.
Up until recently the firm only marketed lycopene in the US, but the company is now looking to broaden its portfolio.
LycoRed bought H.Reisman from Pharmachem Laboratories, with whom the Israeli firm is already in partnership to sell its flagship tomato lycopene ingredient, Lyc-O-Mato.
When asked, the company would not disclose the value of the purchase or say if it is looking to buy other US companies in the near future.
Vice president of H.Reisman, Michael Reuben, will continue with the new organization.
LycoRed was set up in 1995 by Tel Aviv-listed parent company Makhteshim - Agan Industries. Its remit was to develop markets for tomato-derived phytonutrients like lycopene, but also beta-carotene and phytosterols.
The company's business in the US has been small up until now. Its European market however, has seen increased sales volumes through acquisitions such as premix firm Nutriblend in 2003.
