Javier Represas

Natraceutical Group and Naturex reach an agreement to create a world leading company

This merger will create the number one indepent company of natural specialty ingredients in the world.

Wednesday, August 12th, 2009

Natraceutical Group is a Spanish multinational corporation at the forefront of biotechnology applied to nutrition and health. The company is a leading reference in the research and development of naturally-sourced functional, active ingredients and nutritional complements for the foodstuffs, pharmaceutical and cosmetics sectors. Natraceutical Group is today a multinational group with more than 500 staff from several nationalities in the five continents, working from thirteen different countries in the world. This fact gives the company a versatile view of the main global markets. The company streamlines its industrial activity through two divisions, Ingredients and Food Supplements.

The Group’s Ingredients division currently runs production facilities in Spain, UK, Switzerland, Australia and Brazil; and operates actively in over 60 countries, running branches in Europe, US and the Asia Pacific region, plus several sales networks worldwide. Natraceutical provides products and services to over 1,000 companies worldwide, including eight of the world’s ten leading food corporations. Currently, Natraceutical Group’s Ingredients Division includes the following industrial companies: Natraceutical Industrial SLU, Obipektin AG, Overseal Natural Ingredients Ltd, Exnama Ltd, Kingfood Australia PTY Limited and Natraceutical Canada.

The Group’s Food Supplements division operates in Europe through the brand Forté Pharma, specializing in nutritional supplements for health, beauty and weight control.

Natraceutical Group has become a provider of nutritional and functional ingredients following an ongoing project launched in 2005, when the company started their international expansion process through several acquisitions in this sector. In October 2006, Natraceutical expanded its sphere of activity by penetrating the nutritional supplements sector with the acquisition of Monaco-based company Laboratoires Forté Pharma, one of the leaders in the French market. The strategy of value creation with this transaction was considering the creation of a Pan-European brand in a three-years period. At present, Natraceutical has already introduced Forte Pharma in Belgium, Netherland, Switzerland, Austria, Italy, Spain and Portugal.

In August 2009, Natraceutical communicated that formalized an agreement of merger with the French company Naturex, to unify its division of ingredients. This way, the Spanish group will be one member of the board of directors of the French one, and it will turn into one of its significant not majority shareholders. As the group reports the binding contract will have to be passed for both boards of directors and will be subject to the financial viability of the operation. After this process, it will communicate the final participation of Natraceutical and Naturex. The Spanish group hopes that the operation will be effective at the end of November of this year and predicts that sales of Naturex for 2009 will place around 200 million euros.

Xavier Adserá, president of Natraceutical, was commenting in the Spanish newspaper El Economista that his team wait for a few months of hard work for the merger of the division of ingredients with Naturex. It´s necessary to determine what percentage of the capital of the fused one will control Natraceutical, but it hopes that it will be between 38 and 40 % of the whole. The president of the group has added that what they hope now is to increase the value of this participation and that it should be reflected in the capitalization of Natraceutical, whereas the project of Forté Pharma is consolidated. For it, Natraceutical will realize a presentation of the new company to north american investment funds, which know very well the business of ingredients.

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