March 3 - On February 20, global specialty chemicals supplier Cognis signed an agreement to sell its Botanicals Extracts Business to Burgundy Botanical Extracts Iberia, S.A. (Burgundy). Today, Cognis and Burgundy announced that the sale of the Botanicals Extracts Business has now been formally completed.
Cognis has sold its Botanicals Extracts Business in order to streamline its portfolio in businesses which offer critical mass and bring competitive synergies in its key markets. The new owner is Burgundy, a fast growing company specialized in the botanical extract business using solvent extraction, headquartered in Reyssouze, near Lyon in France. The company is owned by Cristal Union Group and Holding Financière Maconnaise (HFM).
The Botanicals Extracts Business focuses on the production of botanical extracts for pharmaceuticals, dietary supplements and cosmetics, and operates two production sites in Spain. In 2007, it generated net sales of around 9 million euros. Its main products – liquorice derivatives, phytopharmaceuticals, and dry and liquid herbal extracts for dietary supplements and cosmetic industries – are supplied to customers around the world. Under the agreement Cognis will continue production and distribution of certain botanical products for the cosmetics industry and will retain ownership of its Plantalin range, comprising of selective plant extracts designed for functional food and beverage applications. Burgundy Botanical Extracts will distribute the Plantalin range to the pharmaceuticals and dietary supplements industry in the EU.
Comments Stéphane Baseden, Executive Vice President Nutrition & Health: “We are very pleased about this agreement with Burgundy. With its market strength, the company will leverage the key synergies and realize the growth potential that this unique combination will offer to the market. We will work closely together with Burgundy to ensure a smooth transition of the business operations.”
“The acquisition of the Botanicals Extracts Business is totally consistent with our growth strategy,” says Charles Duval, General Manager Burgundy. “Its product range fits well with our existing portfolio, and gives us a new entry point into the pharmaceutical, dietary supplements and cosmetic industries that will strengthen our offering and market position to even better serve Burgundy and Cognis botanicals customers.”