Founded in 1998 and located in the Arava desert in southern Israel, Algatech is leading innovation in the microalgae industry and is one of the very few companies with a commercial-scale production. Algatech’s mission is to unlock and share the immense power of microalgae by bringing algae-based products to market and continuing to explore its wide-ranging applications. Over the past two decades, the company has grown to become one of the world’s largest photobioreactor facilities, and a leading biotech business in the nutraceuticals sector. Algatech has complete oversight and control of its value and supply chains—from research, science, IP and cultivation to product development, testing and marketing—and can deliver tailored end-to-end solutions to meet its customers’ needs. Algatech currently exports to more than 35 countries worldwide, serving leading brands across the nutrition, cosmetic and food, and beverage industries.
Algatech has realized high double-digit top-line growth over the last several years and this trajectory will accelerate with Solabia’s backing. The strategic investment from Solabia will support Algatech’s continued focus on R&D and product development, as well as the expansion of its production capabilities, enabling the company to serve the increasing global demand for microalgae. Algatech will become the centerpiece of Solabia’s nutrition division and the combination will allow both companies to benefit from the combined network and expertise, as well as to access new marketing channels and an expanded customer base.
The transaction represents a full realization of UK-based investment firms Grovepoint Capital and JCA Charitable Foundation in Algatech, while Kibbutz Ketura will retain a minority share.
Commenting on the acquisition, Hagai Stadler, chief executive officer of Algatech, said: “We are excited to announce Algatech’s acquisition by Solabia. 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. 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. I am thankful for the hard work and dedication of our employees, and the incredible support of our previous investors Grovepoint Capital and JCA Charitable Foundation over the past six years.”
Gerard Josset, chief executive officer of Solabia Group, said: “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. Following our acquisition of Algues & Mer in 2016, this investment will allow us to further strengthen our position in the nutrition and food supplement markets. We are looking forward to working with Algatech and its accomplished team to accelerate the growth of its current product portfolio, as well as to develop new algae-based products for the cosmetics and pharmaceuticals industries. The strength of Algatech’s team of experts is undeniable and we are excited and honored to have them join the Solabia Group.”
Peter Sugarman from Yigal Arnon & Co. served as legal counsel to Algatech and Asaf Nahum from Herzog Fox & Neeman served as legal counsel to Solabia in Israel. Mishcon de Reya served as legal counsel to Algatech and Latham & Watkins served as legal counsel to Solabia in the UK.