Gadot acquires Pharmline in ingredients expansion

By Stephen Daniells

- Last updated on GMT

Related tags: Nutrition

Israeli minerals maker Gadot Biochemicals has announced the
acquisition of 85 per cent US-based Pharmline Holding as the
company expands its health ingredients business.

"The acquisition of Pharmline is in line with Gadot's growth strategy - focusing on the nutraceutical and functional food markets,"​ said Jacob Zack, CEO of Gadot. "Pharmline is an important link in the supply chain to these markets and this acquisition will enable Gadot to diversify its products line and to broaden its customer base in North America."​ Ronny Hacham, V.P of business development and marketing at Gadot, told that more acquisitions could be expected as the company continues its expansion into dietary supplements and functional foods. Gadot, which claims to be the largest supplier of calcium to American orange juice producers, has a significant share of the global mineral salts market, an area that has given it added value as revenue from its initial core product - citric acid - declines. But as Chinese competition in the minerals business increases, the company revealed that it was to protect its strong growth momentum by offering additional nutritional ingredients. The acquisition of Florida-based Pharmline, expected to be completed by the end of June, gives the company access to expertise in processing and marketing of ingredients and premixes to the nutraceuticals market in North America. The deal is said to enable Gadot to broaden its portfolio and services to the food industry, and more specifically to the functional food industry, providing processed, custom-made ingredients as well as tailor-made premixes. This acquisition is also envisaged to enable Gadot to broaden its enrichment minerals product line. Gadot's Gado range consists of six calcium ingredients (Gadocal), four magnesium (Gadomag), one zinc (Gadozinc) and one with all three (Gado Multimin). "Adding Gadot's capabilities and vast experience in ingredients and applications development to Pharmline's excellent technology will create a strong platform for offering tailored premixes as well as ingredients tailored to customer-specific requirements,"​ said Hacham. "The functional food industry poses a great growth opportunity for ingredient suppliers and we definitely want to take part in this fast growing market,"​ he added.

Related topics: Suppliers

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