Paris, France--Solabia Groupannounced in a press release that it has acquiredAlgatech Ltd., which specializes in the development, cultivation and commercialization of ingredients derived from microalgae for supplement, food and cosmetic brands.

According to the announcement, Algatech, which is based in the Arava desert in southern Israel, will become the centerpiece of Solabia’s nutrition division. The acquisition will allow the companies to benefit from an extended network and base of expertise, as well as new marketing channels and an expanded customer base. Solabia will work with Algatech’s team to accelerate the growth of its product portfolio and develop new algae-based products for the cosmetics and pharmaceuticals industries.

"Algatech’s pioneering R&D, impressive manufacturing facilities, market leading product portfolio and established customer base brings the opportunity for Solabia to be present in both fields of macroalgae and microalgae whose futures are very promising," said Gerard Josset, CEO of Solabia, a family-owned company that works closely with its minority partner TA Associates and provides a range of active ingredients used by the cosmetics, pharmaceutical, diagnostic and nutrition industries worldwide.

Hagai Stadler, CEO of Algatech, expressed excitement over the acquisition. "It marks a significant milestone for the Company and all of the people behind its success to date and is an important step towards realizing our mission to unlock the power and share the benefits of microalgae with the world," he said. "Together with Solabia, we are poised to extend the Algatech growth story as part of a larger organization with an extensive global footprint, a shared commitment to innovation, research and development, and an unwavering focus on utilizing the benefits of microalgae to elevate the health of all of us."

The transaction represents a full realization of UK-based investment firms Grovepoint Capital and JCA Charitable Foundation in Algatech; Kibbutz Ketura will retain a minority share. Financial terms of the transaction were not disclosed.