Naturex, a French supplier of natural speciality ingredients to food, flavour, food supplements, pharmaceutical and cosmetic industries, has reached an agreement with Natraceutical, a Spanish biotechnology corporation for the merger of their ingredient activities, which is expected to be effective before the year end.

Jacques Dikansky (Naturex) and Xavier Adserà (Natraceutical)

The two companies have a complementary product portfolio that includes nutraceutical ingredients, flavouring, preservative and innovative extracts on Naturex’s side, and natural colours, fruit and vegetable powders, pectins, functional ingredients, yeasts and caffeine by Natraceutical’s ingredients division. Furthermore, while Naturex is strongly positioned in the USA, Natraceutical holds strong market shares in Europe.

This merger aims to create the World’s number one independent company of natural specialty ingredients. The resulting company will have production sites in Europe (France, Italy, Spain, Switzerland and United Kingdom), the USA, Morocco, Australia and Brazil and own sales offices in the USA, Europe and Asia.

After this operation, Naturex will double its turnover (proforma sales will reach in 2009 around EUR 200 million against EUR 93 in 2008).

Natraceutical will focus its efforts in the development of their nutritional supplements division in Europe, which the company markets exclusively in pharmacies under the brand name Forté Pharma.

In the future, Natraceutical should hold between 38% and 40% of Naturex shares. Natraceutical will become a relevant minority shareholder and a board member of Naturex, chaired by Jacques Dikansky, Chairman and CEO.