Naturex Acquires Decas Botanical Synergies to Enter Cranberry Space

19 Sep 2012 --- NATUREX, world leader in specialty plant-based ingredients, has announced the acquisition of DECAS Botanical Synergies, an American company located in Massachusetts, leader in Cranberry extracts and powders for nutraceutical and pharmaceutical industries.

This acquisition, the fourth one carried out by NATUREX since the capital increase in October 2011, fits with the Group's strategy to accelerate its development in dynamic markets and expand its range of innovative ingredients with high value-added, bearers of synergies.

 

For many years now, DECAS Botanical Synergies has benefitted from a great deal of expertise in developing, formulating and marketing Cranberry extracts and powders.

 

Indeed, the Cranberry is a plant for which the commercial culture is substantial in the United States (primarily in Wisconsin and Massachusetts) and in a few provinces of Canada. Cranberry fruit is recognised for its therapeutic qualities, for its action against urinary infections thanks to the A-type proanthocyanidin that it contains, as well as for its antioxidant properties.

 

Backed with its scientific and technical know-how, the Company has been able to create substantial loyalty with its well-known customers in the nutraceutical and pharmaceutical markets in the United States (65% of sales) as well as in Europe (30%) and in the Asia/Pacific region (5%), through an impressive portfolio of cranberry nutraceuticals with clinical support.

 

The completion of this acquisition provides NATUREX with the opportunity to expand its range to very high quality natural ingredients with a strong scientific potential (health claims, clinical trials…) and also allows it to strengthen its leadership in the segment of natural ingredients bound for the nutraceutical industry.

 

DECAS Botanical Synergies (DBS) will benefit from the worldwide geographic network formed by NATUREX's sales force as well as the Group's marketing know-how in order to maximise the commercial sales synergies and diversify the customer base.

 

In addition, NATUREX's scientific expertise in terms of Research & Development and Quality Control will foster DBS to develop new innovative solutions with high value-added.

 

"We are proud of this fourth acquisition which supplements our cycle of external growth that was initiated in October 2011 and we are delighted to welcome the DECAS Botanical Synergies team into our Group. This operation allows us to become the leader in Cranberry extracts and is an excellent opportunity to strengthen our position in the development and sales of technical solutions with high-value added offerings for our customers” declared Thierry LAMBERT, the Group's Vice-President and Chief Executive Officer.

 

Doug KLAIBER, CEO of DECAS Botanical Synergies, added: "We are very pleased to join NATUREX Group and we look forward to playing an active role in this new organisation. The expertise of NATUREX's scientific teams combined with the strength of its sales network will allow us to accelerate the development of our innovative and clinically substantiated product range, through a differentiating offering and to boost sales with a diversified customer base."

 

There is a growing body of science that demonstrates that the cranberry possesses a unique combination of phytonutrients that help promote and maintain health, especially in the urinary tract. Urinary tract infections (UTIs) affect over 11 million women in the U.S. annually, and 25% of these recurrently, with a total annual cost approaching $2 billion. Research published in peer-reviewed, scientific journals has established that cranberries contain proanthocyanidins (PACs) with an unusual A-type linkage. These compounds are considered responsible for helping to protect against UTIs due to their anti-adhesion properties of pathogenic E. coli to uroepithelial cells and tissues. Additionally, this same bacterial anti-adhesion effect has been found elsewhere in the body against certain other bacteria, including those responsible for periodontal disease and H. pylori, the leading cause of stomach ulcers – a major risk factor for stomach cancer.

 

Headquartered in Carver, Massachusetts, Decas Botanical Synergies (DBS), is a developer, manufacturer and marketer of proprietary, value-added cranberry-derived ingredients for the dietary supplement, functional foods, animal feed and nutrition, personal care and cosmetics, and oral health industries.

 

The revenue of DECAS Botanical Synergies generated in fiscal year 2011 amounted to about USD 10 million.

 

After this acquisition, NATUREX Inc. holds 95% of the capital of DECAS Botanical Synergies; the remaining 5% is held by Doug KLAIBER, CEO of DBS. The company shall maintain its management team and corporate headquarters in Massachusetts.

 

DECAS Botanical Synergies will be consolidated into NATUREX's consolidated financial statements from 19 September 2012. The amount of the acquisition is not released.