Algaia to acquire Cargill’s Alginate business

French natural solutions supplier Algaia has agreed to acquire Cargill’s Alginate business and its related manufacturing facility located in Lannilis, France.

A US-based producer and marketer of food and agricultural products, Cargill is now entering into the employees’ representative consultation process regarding the sale of Lannilis industrial site to Algaia.

The financial details of the deal have not been divulged by either company.

Algaia CEO Fabrice Bohin said: “The acquisition of Cargill’s Alginate business nicely fits into our strategy.

“Our commercial, technical, engineering and management teams benefit from decades of experience in the field of marine-based hydrocolloids or specialty extracts. We will be able to support and grow the alginate business, and we will continue to expand our structure with additional industry talents.

“We currently benefit from portfolio and strategic synergies with our current Chilean partner. We also developed eco-friendly extraction technologies that Lannilis could benefit from.

“Our company is focused on speciality marine ingredients with a deep experience in the field. We are both customer service and customer solution-orientated.”

Upon closing of the deal, Algaia plans to welcome a new strategic investor in its shareholding structure, thus considerably increasing its financial resources and fuelling its growth ambitions.

Algaia has gone through major transformations after the appointment of its new CEO in 2014, when the company's name was changed from Eviagenics. Last year, it entered into a strategic alliance with Gelymar, a global manufacturer of carrageenan.

Emertec Gestion managing director Eric Marty said: “We are delighted to carry on supporting Algaia in this new phase of its development and welcome a strategic investor on board who will bring a significant additional value to Algaia.

“This is a large company with an international footprint in human and animal health and nutrition.

“Algaia’s current and new shareholders have the ambition to bring the company to a leading position in the arena of specialty marine ingredients, in which we foresee tremendous potential.”

Emertec is currently Algaia’s main investor, along with CEA investissement and Cap Decisif Management.

Algaia recently acquired Alganact, a French start-up in specialty marine ingredients.