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.”
Cognis is a worldwide supplier of innovative specialty chemicals and nutritional ingredients, with a particular focus on the areas of wellness and sustainability. The company employs about 6,000 people, and it operates production sites and service centers in 30 countries. Cognis has dedicated its activities to a high level of sustainability and delivers natural source raw materials and ingredients for food, nutrition and healthcare markets, and the cosmetics, detergents and cleaners industries. Another main focus is on products for a number of other industries, such as coatings and inks, lubricants, as well as agriculture and mining.
Cognis is owned by private equity funds advised by Permira, GS Capital Partners, and SV Life Sciences. In 2007, Cognis recorded sales of about 2.8 billion euros and an Adjusted EBITDA (operating result) of 360 million euros.
Botanical Extracts is a company specializing in the extraction of natural actives from nature. It is currently present in over 20 countries and is recognized as a European leader in its main areas of activity. Burgundy presently offers a full range of active ingredients, under the strictest ISO 22000 procedure (Burgundy facilities becomes the first company of its sector in accordance with the new standard ISO 22000). Besides these certification, Burgundy has recently integrated environmental components within its site and is certified to manufacture Kosher and Organic grades (“Agriculture Biologique” or “Organic farming” certified by Ecocert).
Since 2007, Burgundy has been strengthening its activity by creating innovative products, in reply to confirmed interests from its market. This new way of thinking leads today to already three natural products, each designed to offer an innovative solution for critical areas, supported by clinical studies: IridoForce™ is the natural and efficient solution against Arthritis and Chronic Joint symptoms, UTIrose™ allows to develop efficient and clinically proven solutions against Urinary Infections Issues and Eyesberry™ is an technological alternative to Bilberry.
With this acquisition, Burgundy follows it strategic business plan, including diversification on food and health, cosmetic and pharmaceuticals sectors, and on the other hand implementation of complementary production capacities and technologies.