December 21, 2011
NATUREX, the global leader in specialty plant-based natural ingredients, announces it has reached an agreement with the Polish Industrial Development Agency (Agencja Rozwoju Przemysłu S.A – ARP), to acquire 100{fed1cb9cadadc7ad93f4a1e5499ba3581105cf44f475991d37411cbe777fdebd} of the capital of ZPOW PEKTOWIN SA (PEKTOWIN), a Polish company based in Jaslo (South-East of the country), specialized in the production of apple and citrus pectins, fruit and vegetable juice concentrates and, for a smaller proportion, the preparation of processed food products.
The full completion of this acquisition is subject to the final agreement of the Polish Ministry of the Treasury which should confirm the privatization of PEKTOWIN by the end of January 2012.
This second acquisition of the year (purchase of BURGUNDY Botanical Extracts on 24 October 2011) fits in perfectly with the Group’s strategy to accelerate its inteational development, expand its product range and strengthen its industrial presence, particularly in emerging countries.
Strengthened industrial capabilities in pectins
PEKTOWIN benefits from a high-capacity industrial tool dedicated to the production of apple and citrus pectins and located at the heart of one of the major region of raw materials used for the production of apple pectins.
Since the acquisition in December 2009 of the Ingredients division of Natraceutical, NATUREX is one of the seven manufacturers of pectins worldwide, with its plant located in Bischofszell (Switzerland). Integrating PEKTOWIN within its scope will enable NATUREX, not only to strengthen its manufacturing base in pectins, but also to benefit from a significant scalability in order to best meet customer needs.
A new industrial base in juice concentrates and a local sourcing
The acquisition of PEKTOWIN also represents an opportunity for NATUREX to gain a new production capacity in the field of juice concentrates. Indeed, PEKTOWIN is one of the main Polish producers of fruit (mainly apples) and vegetable (especially red beets and black radishes) juice concentrates, and produces over 6,000 tons of concentrates each year.
This industrial tool will enable NATUREX to broaden its product range to fruit and vegetable juice concentrates in order, on one hand, to supply its factories in Switzerland, specialized in fruit and vegetable powders from concentrates, on the other hand, to feed its new range of colours, Vegebrite™ (new offering of “colouring Foodstuffs”1), and lastly to offer its customers, a complete range of fruit and vegetable juice concentrates.
In addition, NATUREX will benefit from a high quality sourcing from local producers, in a wealthy agricultural area in fruit and vegetable crops.
A commercial presence reinforced in Easte Europe
PEKTOWIN achieves one third of its sales in Poland and two thirds in Russia as well as in other countries of Easte Europe. Thereby, NATUREX significantly strengthens its commercial presence in Easte Europe, allowing it to create several synergies. In addition to this acquisition, a sales office in Warsaw will be opened in order to support the assistance to clients and prospects as well as the promotion of other ingredients of the Group, locally.
«This new acquisition is perfectly in line with our growth strategy in complementary markets with a broadened product portfolio, a strengthened production capacity as well as an additional industrial know-how », commented Jacques Dikansky, President and CEO of NATUREX.
« We are confident in our ability to integrate PEKTOWIN within NATUREX Group, enhancing its industrial tools and products to our inteational customers thanks to the dynamism of our global sales network, and our technical and scientific expertise. »
Additional information on the terms of this acquisition will be announced at the closing of the transaction.
As exclusive M&A advisors to Naturex, Canec Inteational initiated and facilitated the transaction.