Senior executives for both parties suggested that the deal is a good strategic fit, given that has held licence for the AB-Fortis product since 2012.
AB-Fortis is a food ingredient which employs dual-layer encapsulation to provide a stable, bioavailable form of iron. The technology prevents the release of iron into a food matrix from microcapsules during storage - thus avoiding the metallic taste characteristic of many iron supplements.
The ingredient has applications in the fortification of beverages and foods and can be used in supplements and infant formulas and syrups.
“Delivering iron supplementation in a bio-available and palatable manner is an important objective for many of our food and supplement customers and we continue to work with them closely to bring this and other innovative solutions that combine our core competencies in Taste and Health,” commented Yoni Glickman, president of Frutarom's Natural Product Solutions Unit.
“The acquisition of the AB-Fortis technology continues the fulfillment of Frutarom's broad strategic drive to strengthen its position as a leading, innovative global supplier of natural specialty products and functional food components in the fields of taste and health,” he said.
AB-Biotics said proceeds will also enable it to fund further product innovation and focus on other core areas of business.
“'The divestment of AB-Fortis is part of the company strategy focusing on its Probiotics business, which supported a 69% growth in sales the company reported in the first half of 2017,” commented AB-Biotics founders, Miquel Ángel Bonachera and Sergi Audivert.
“AB-Biotics is currently running 13 clinical trials involving 1,600 patients with probiotics for existing concepts and new indications. The sale of AB-Fortis will support our capital expenditure in R&D,” they added.