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INDIA BUSINESS WORLD - November 16th December 31st 2008
EID PARRY BUYS 48% IN US-BASED VALENSA INTERNATIONAL FOR $9M
AS PART of the growth strategy for its nutraceuticals business, EID Parry has acquired a 48% strategic stake in US-based Valensa International. The Murugappa group company, which was engaged in discussions with Valensa for the last six months, paid $9 million.
For Valensa, it would be backward integration, EID Parry president (bio, nutraceuticals and corporate affairs) D Kumaraswamy said. Headquartered in Eustis (Florida), Valensa International is a leading science-based developer, formulator and provider of high quality naturally-sourced products for the nutritional supplements and functional foods industry. Their products are offered by using supercritical CO 2 extraction process. With product conceptualisation skills and patent protected product formulations, The US-based company is considered a key player in the global Astaxanthin market.
Investing in Valensa would benefit EID Parry’s nutraceuticals business by having access to science-based product patents, extraction technology and market access to the US and European Union countries.
It would jointly manage Valensa with the existing promoters and professionals. The company’s manufacturing and research facilities would support the USbased company’s operations, according to a company release.
EID Parry is a leading manufacturer and exporter of certified organic Spirulina and carotenoids like Natural Beta carotene, Astaxanthin and Tomato Lycopene. The company is a global leader in microalgal technology and has commercialised 3 major microalgae sources of nutraceuticals—Spirulina, Dunaliella salina (Source of Natural Beta carotene) and Haematococcus pluvialis (Source of Astaxanthin).
The business has drawn out plans to become a dominant player in the global Carotenoids market, which has wide application in the dietary supplement, functional food and beverage sectors. The business would leverage on its microalgal expertise and would explore partnership and alliances to meet this objective.
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