Naturex, the French producer of natural ingredients for the flavour, food and nutraceutical industries, signed a letter of intent in order to acquire 100 per cent of an American company, reports Les Echos.
This operation should increase the part of its turnover done in the United States, from 40 to 60 per cent; where Naturex created a branch in 1997. It is estimated that, based on the 2001 results, earning per share should double.
To finance the $10m (Euro10.857m) costs to acquire this company based on the West Coast, Naturex is to increase its capital by Euro8m with the help of the stock market next November. Once completed, shareholders would be majority, instead of Mr. Jacques Dikansky, president of Naturex and currently majority shareholder.
The American company, whose name has not been revealed, has a turnover of approximately $7.5m (Euro8.143m) and reaches a before-tax profit of $2m (Euro2.171m). It produces and commercialises nutraceutical ingredients, a market on which Naturex realised its strongest growth rates in 2001 and on which it realises 20 per cent of its turnover.
By absorbing this Californian company, Naturex could achieve 45 per cent of its turnover in the nutraceutical niche. The Avignon-based company claims it can gain several years of development through this acquisition. The new group should achieve a consolidated turnover of Euro25m and expects an organic growth of 20-25 per cent in 2002.
In 2000, Naturex had a turnover of Euro12.24m and a final result of Euro0.19m. During the first quarter 2001, turnover increased 39 per cent to Euro8.4m. For the current fiscal year, Naturex forecasts a 30 per cent growth of its turnover and the doubling of its final result.