NextStage AM acquires stake in Fermentalg as demand for microalgae ingredients piques

20 Dec 2021 --- Fermentalg, a French player in microalgae, has secured an equity investment from the NextStage AM investment fund connected with the private placement subscribed by Theodore H. Nixon, chairman of the board of directors, DDW.

Speaking to FoodIngredientsFirst, Philippe Lavielle, CEO of Fermentalg, says that microalgae-derived ingredients and products are growing in appeal among consumers. 

“Driven by increasing demand for natural and plant-based ingredients, we also note a developing concern from consumers on the environmental impact of their nutrition, which favors fermentation-derived foodstuffs. All-in-all, microalgae-derived ingredients have a lot to offer in the areas of health and nutrition,” he asserts. 

Lavielle says that 2021 closes with Fermentalg in a strong position in all three business units. 

“Our omega 3 sales are growing at a rapid pace, the industrialization of our food colorant Blue Origins is progressing as planned, and we have now launched CarbonWorks, our dedicated carbon capture (CCU) joint venture with Groupe Suez.”

In June 2020, Fermentalg established a commercial development partnership with US industrial group DDW.“With a strong backing from historical and new investors, I am expecting 2022 to confirm these positive trends and position Fermentalg as one of the world’s leading microalgae specialists,” he underscores.

Recent investments
In June 2020, Fermentalg established a multi-year technological, industrial and commercial development partnership with US industrial group DDW, which was recently acquired by Swiss company Givaudan, to place its natural blue food coloring, Blue Origins on the market. 

Building on the success of this collaboration, Nixon had expressed his interest in making a personal investment of €5 million (US$5.6 million) in Fermentalg. 

In response to NextStage AM’s desire to become a significant shareholder of the company, Fermentalg decided to increase the size of its capital-raising target to €8 million (US$5.6 million), allowing NextStage AM to invest €3 million (US$3.3 million).

NextStage AM has been supporting growth entrepreneurs in their development since 2002 with its multi-strategy private equity platform, which at the end of December 2020 represented more than €6.1 billion (US$6.8 billion) in assets under management directly and indirectly collected from institutional and individual investors.

Florent Saint Léger, director of Listed Investments at NextStage AM, explains: “For more than 18 months, we’ve been watching Fermentalg, analyzing the company’s value in-depth, and having regular discussions with its management.”

“Today, we are convinced that it’s a good time for us to become shareholders and support the company in its growth. Fermentalg is positioned in the right markets with the right products, the right partners, and a strong team to make commercial successes out of their innovations.”

The investment is made through the private issue of over 2.9 million ordinary shares exclusively to a class of qualified investors. It also includes the cancellation of the preferential subscription rights of the company’s shareholders, to which Nixon subscribed for 1.8 million ordinary shares and NextStage AM for over 1.09 million ordinary shares.

By Elizabeth Green