Flavour company Frutarom has signed an agreement with Spanish biotech company AB-Biotics to acquire its iron deficiency ingredient AB-Fortis.
AB-Fortis is a patent-protected micro-encapsulation technology that enables delivery of iron with increased biological absorption, while avoiding the side effects of metallic taste and digestive problems.
Frutarom said that the product provides a unique and innovative way to effectively administer a daily dose of iron.
In 2013 Frutarom and AB-Biotics signed a marketing agreement for AB-Fortis and following product launches in Europe, Asia and Latin America, Frutarom has decided to acquire the technology and expand its activity.
Last week, it acquired full ownership of Israeli ingredients company Enzymotec for approximately $210 million. The AB-Fortis deal is the company’s tenth acquisition of the year so far.
In a statement, Frutarom said: “Coating the iron using AB-Fortis’ unique micro-encapsulation technology significantly increases the ability of the iron to be absorbed in the tissues, makes the iron tasteless and allows for the administering of a lower dosage along with a significant reduction in side effects.
“The AB-Fortis activity will join Frutarom’s established activity in specialty fine ingredients, the framework in which Frutarom develops, produces and markets active substances and natural specialty patent protected extracts with scientifically proven healthy qualities backed by clinical trials to tens of thousands of customers throughout the world.”
President of Frutarom’s Natural Product Solutions Unit Yoni Glickman said: “The acquisition of the AB-Fortis technology continues the fulfilment of Frutarom’s broad strategic drive to strengthen its position as a leading, innovative global supplier of natural specialty products and functional food components in the fields of taste and health. AB-Fortis’ unique micro-encapsulation technology expands Frutarom’s diverse product portfolio in the growing field of specialty health ingredients.
“Delivering iron supplementation in a bio-available and palatable manner is an important objective for many of our food and supplement customers and we continue to work with them closely to bring this and other innovative solutions that combine our core competencies in taste and health.”
Frutarom employs around 5,000 people worldwide and operates in two main areas: flavours and speciality fine ingredients.
CEO Ori Yehudai said the company has a shortlist of around 200 acquisition targets as it aims to grow sales from $1.15 billion in 2016 to $2 billion in 2020.
© FoodBev Media Ltd 2019