Solabia’s investment will support Algatech’s continued focus on R&D and product development, as well as the expansion of its production capabilities
Algatech's first solar facility in the Arava Desert
Algatech has been acquired by Solabia Group, thus adding microalgae ingredients to its portfolio. The French group is a global provider of biotechnology, fine chemicals and plant extraction technologies, and provides a range of active ingredients used by the cosmetics, pharmaceutical, diagnostic and nutrition industries worldwide.
Financial terms of the transaction were not disclosed.
Founded in 1998 and located in the Arava desert in southern Israel, Algatech is an innovator in the microalgae industry and is rare in it high-quality commercial-scale production at the very highest standard.
Over the past two decades, Algatech has grown to become one of the world’s largest photobioreactor facilities, and increased its presence in the nutraceutical sector. The company has completed oversight and control of its value and supply chains – from research, science, IP and cultivation to product development, testing and marketing – and can deliver tailored end-to-end solutions to meet its customers’ needs.
Algatech currently exports to more than 35 countries worldwide, serving leading brands across the nutrition, cosmetic and food and beverage industries. With high double-digit top-line growth over the last several years, the company expects this trajectory to only accelerate with Solabia’s backing.
The strategic investment from Solabia will support Algatech’s continued focus on R&D and product development, as well as the expansion of its production capabilities, enabling the Solabia to serve the increasing global demand for microalgae. Algatech will become the centrepiece of Solabia’s nutrition division and the combination will allow both companies to benefit from the combined network and expertise, as well as to access new marketing channels and an expanded customer base.
Gerard Josset, Solabia CEO, said: “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.”
The transaction represents a full realisation of UK-based investment firms Grovepoint Capital and JCA Charitable Foundation in Algatech, while Kibbutz Ketura will retain a minority share.
Commenting on the acquisition, Hagai Stadler, CEO of Algatech, said: “It 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.”
Following Solabia’s acquisition of Algues & Mer in 2016, this investment will allow further strengthening of the company’s position in the nutrition and food supplement markets, growing of its current product portfolio, as well as developing new algae-based products for the cosmetics and pharmaceuticals industries.
Sir Stephen Waley-Cohen, Chairman of JCA Charitable Foundation, said: “We have been involved since the very start of Algatech, a ground-breaking project leveraging 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. Realising our investment will enable us to support many more projects in the rural periphery of Israel.”