Lonza Acquires Larch Arabinogalactan business from Larex

17/05/06 Lonza has acquired Larex Inc.’s Larch Arabinogalactan business. Financial details of the transaction were not disclosed.

Larex is the exclusive North American vertically integrated manufacturer of the nutritional compound Larch Arabinogalactan (LAG), a natural soluble fibre extracted from harvested larch trees. LAG is extracted and purified through a patented and proprietary process to deliver functionally optimized products sold in health science, consumer and industrial markets. With the acquisition, Lonza has further expanded its portfolio of nutrition businesses within Organic Fine & Performance Chemicals. The Lonza division thus continues to actively broaden its innovative offerings and complements the existing product line.

LAG, a natural, bioactive compound for use in human and animal nutrition, personal care and industrial applications, is generally recognized as safe (GRAS). It has been found to offer many significant health benefits, the most important ones being in the fields of immune enhancement and digestive health. LAG products provide multifunctional properties either in stand-alone products or when combined with other ingredients to enhance product performance.    

Late last year Lonza bought the DHA health food ingredient business from Celanese Corporation to strengthen the nutrition business. Last month, the group, which also makes ingredients for the pharmaceuticals industry, confirmed its medium-term financial targets, saying the year had got off to a good start. It said it might sell its polymers intermediates unit.