Israeli flavors and specialty natural ingredients company Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; OTCBB:FRUTF) is investing NIS 10 million (about $2.6 million) in biotech company Algalo Industries Ltd.. Frutarom will receive a 50% stake in the company, based at Kibbutz Ein Hamifratz near Haifa, and the investment will be used to build a biotechnology facility that will specialize in cultivation, harvesting and processing algae using advanced methods. Frutarom will have exclusive worldwide marketing rights for Algalo products.
Algalo has developed a unique and innovative method for the efficient cultivation, harvesting and processing of a wide variety of algae that yield active ingredients for use in the food, dietary and clinical nutrition supplements and cosmetics industries. These include strong antioxidants, lipids and unique proteins and carotenoids which help in maintaining cardio-vascular health, a strong immune system, and healthy skeletal and bone structure.
The unique technology developed by Algalo allows for the efficient and competitive cultivation of algae containing high concentrations of active elements.
Algalo's activity will join Frutarom's well-established operations in the field of algae cultivation and production of active ingredients (polysaccharides) currently being used by some the world's leading cosmetics companies for use in their skin care and protection products.
Frutarom CEO and president Ori Yehudai said,"The investment in Algalo is part of a broad strategic move by Frutarom to reinforce its position and standing as a leading and innovative global supplier of natural specialty products and functional food ingredients in the fields of taste and health which already now make up over 75% of Frutarom's activity. The technology developed by Algalo for cultivating, harvesting and processing algae expands Frutarom's internal R&D capabilities for producing active ingredients from algae, a field in which we are already active, and provides an innovative platform and an additional growth engine for expanding Frutarom's diverse product portfolio in the growing field of natural specialty ingredients. We will work towards leveraging the cross-selling opportunities arising from this investment by expanding Frutarom's product portfolio and technological abilities and by presenting Algalo's innovative products to our thousands of customers worldwide."
Published by Globes [online], Israel business news - www.globes-online.com - on January 4, 2016
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