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Naturex and Natraceutical Group have agreed to merge Natraceutical's ingredients division into Naturex. The resulting company will become a supplier of natural specialty ingredients, combining the nutraceuticals, flavors, preservatives and extracts from Naturex with the natural colors, fruit and vegetable powders, pectins, functional ingredients, yeasts and caffeine from Natraceutical.
Natraceutical members will serve on the board and as a relevant minority shareholder alongside SGD, the family-controlled holding company of Jacques Dikansky, Naturex chairman and CEO. The companies are initiating the due diligence process to formalize the contract, to be approved by the respective boards of directors and Naturex’s shareholders. The agreement is subject to the financial feasibility of the project and the authorization by the French financial market authority (Autorité des marches financiers).
The transaction is expected to integrate Natraceutical’s ingredients division into Naturex; Naturex reportedly will benefit from Natraceutical's European distribution and the resulting company will have production sites in Europe, the United States, Morocco, Australia and Brazil, as well as sales offices in the United States, Europe and Asia.
The company will operate under Naturex management, headed by Jacques Dikansky, chairman and CEO of the company. Natraceutical Group will focus its efforts in the full development of its nutritional supplements division in Europe, which the company markets exclusively in pharmacies under the brand name Forté Pharma. This transition is expected to transpire before the end of 2009.