According to Solbia, Algatech will become the centrepiece of its nutrition division, with the combination allowing both companies to benefit from a combined network and expertise, as well as to access new marketing channels and an expanded customer base.
“Algatech’s pioneering R&D, impressive manufacturing facilities, market leading product portfolio and established customer base brings the opportunity for Solabia to be present in both fields of macroalgae and microalgae whose futures are very promising,” commented Gerard Josset, Chief Executive Officer of Solabia Group.
“Following our acquisition of Algues & Mer in 2016, this investment will allow us to further strengthen our position in the nutrition and food supplement markets,” he added. “We are looking forward to working with Algatech and its accomplished team to accelerate the growth of its current product portfolio, as well as to develop new algae-based products for the cosmetics and pharmaceuticals industries.
Commenting on the acquisition, Hagai Stadler, CEO of Algatech said the deal marks a significant milestone for the company and all of the people behind its success to date “and is an important step towards realising our mission to unlock the power and share the benefits of microalgae with the world.”
“Together with Solabia, we are poised to extend the Algatech growth story as part of a larger organisation with an extensive global footprint, a shared commitment to innovation, research and development, and an unwavering focus on utilising the benefits of microalgae to elevate the health of all of us.”
Family-owned Solabia worked closely with its minority partner TA Associates on the deal, which will see previous investors in Algatech – UK-based investment firms Grovepoint Capital and JCA Charitable Foundation – exit, while Kibbutz Ketura will retain a minority share.
“When we invested in Algatech six years ago, we recognised growth opportunities in the microalgae industry and saw significant potential for Algatech as a leader in that space,” said Bradley Fried, co-founder and partner at Grovepoint Capital.
“The talented team of experts at Algatech have successfully managed to harness the power of microalgae and its related applications, bringing the company’s products to an increasing customer-base across the world.”
“We have been proud of Algatech’s growth and development, and wish Solabia and the company every success in its next stage of development.”
Sir Stephen Waley-Cohen, chairman of JCA Charitable Foundation added that it has been involved since the very start of Algatech, which came about as a ground-breaking project that leveraged science from Ben Gurion University to create innovative products in the desert.
“We are very proud of the high level of employment achieved at Kibbutz Ketura, and the world-beating products which are developed at Algatech,” he added. “Realising our investment will enable us to support many more projects in the rural periphery of Israel.”
Algatech CEO Stadler added: “I am thankful for the hard work and dedication of our employees, and the incredible support of our previous investors Grovepoint Capital and JCA Charitable Foundation over the past six years.”