Maabarot Products Ltd. (TASE: MABR) has completed its acquisition of a 40% stake in Algaia, a French company developing, selling, and marketing raw materials produced from seaweed, for €5 million. Maabarot, controlled by Kibbutz Maabarot with a 59% holding, last September signed a non-binding memorandum of understanding for the acquisition of shares in Algaia, a private company. Maabarot also has an option to increase its holdings in Algaia to a controlling interest in the future.
Algaia plans to use the money to acquire assets and Cargill, a US company that also produces raw materials from seaweed. Algaia, which has 12 employees, operates a development laboratory in France. The acquisition of Cargill will give Algaia ownership of a production plant in France with 66 employees.
Figures published today by Maabarot show that the revenue turnover of Algaia and Cargill totaled NIS 92 million in 2015 and NIS 76.5 million in 2016 (the company's financial year ends in June). The two companies posted a combined EBITDA of negative NIS 1.4 million in 2015 and negative NIS 3.1 million in 2016. Algaia and Cargill jointly possess assets worth NIS 103 million, including, among other things, NIS 37 million in inventory and NIS 58 million in fixed assets. Their liabilities total 9 million.
Maabarot said that its Algaia acquisition was part of its strategy of growth through deals aimed at expanding its business in Israel and overseas to new areas with growth potential relevant to the company's core business.
Maabarot chairman Eyal Shalmon today said, "Algaia's revenue fell substantially last year because Cargill stopped developing seaweed products for the pharma industry. We plan to have Cargill reenter the seaweed based pharma products market, as well as the personal care and food categories."
Algaia's business comes in addition to Maabarot's four areas of business: food additives and organic food, food and products for pets, agriculture, and baby food.
Published by Globes [online], Israel Business News - www.globes-online.com - on January 10, 2017
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