Algaia in “Handshake” Deal to Buy Cargill’s Alginate Seaweed Firm
19 Sep 2016 --- Algaia has signaled its intent to acquire Cargill’s seaweed business Alginate and French manufacturing facility at Lannilis. The acquisition would strengthen Algaia’s position in the seaweed sector and would mark a significant step forward in the company’s development.
CEO of Algaia Fabrice Bohin tells FoodIngredientsFirst how the deal boosts operations in the fast-growing seaweed sector and should be completed in November.
“The acquisition fits nicely with what we want to and is a booster for our operations and the total potential that we foresee in seaweed. We are going through the legal process, we made an offer and signed the protocol, and we have to go through the natural steps of consultation and this kind of thing before we can close. There is no antitrust barrier as far as we are concerned,” he says.
“The French facility will be an accelerator and doesn’t conflict with anything we’ve done so far. We also very much like that this plant is located next to the fresh raw material because we believe strongly that the most sustainable plants will be those located next to the raw material.”
“Here we are right next to a large fresh biomass that can be collected all along the year and that really adds a very strong value for us.”
Cargill is now entering into the employees’ representative consultation process regarding the sale of Lannilis industrial site to Algaia. Upon closing, Algaia will also welcome a new strategic investor in its shareholding structure, thus considerably increasing its financial resources and fuelling its growth ambitions.
Algaia (previously named Eviagenics) has gone through a major transformation to focus mainly on marine-derived ingredients. A strategic alliance with Gelymar SA, one of the leading carrageenan manufacturer worldwide was established in 2015. Over the same period, Algaia’s historical shareholders, three well established private equity funds, have renewed their confidence in the company’s strategy and in its management through an additional investment round of several million euros.
As of 2016, top class industry experts, coming both from the field of conventional and specialty seaweed extracts, have joined Algaia’s management structure and board.
Simon Waters, business manager at Cargill Texturizing Solutions tells FoodIngredientsFirst: “We are very grateful for the support and positive attitude of our employees throughout the past months and happy to see them potentially joining a dynamic and ambitious environment where Lannilis will play a central role and that this traditional activity will remain in the region.”
Upon the completion of Cargill’s Alginate business acquisition, a new strategic investor, whose name will be announced later, will join Algaia’s shareholding structure.
“We are delighted to carry on supporting Algaia in this new phase of its development and welcome a strategic investor on board who will bring a significant additional value to Algaia. This is a large company with an international footprint in human and animal health & nutrition. Algaia’s current and new shareholders have the ambition to bring the company to a leading position in the arena of specialty marine ingredients, in which we foresee tremendous potential,” adds Eric Marty, managing director of Emertec Gestion. Emertec is currently Algaia’s main investor together with CEA investissement and Cap Decisif Management.
The financial details of the acquisition have not been revealed.
by Gaynor Selby
