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Cognis' agreement to sell its botanicals extracts business to Burgundy Botanical Extracts Iberia, S.A., signed on Feb. 20, 2009, has been formally completed. Cognis undertook the sale of the business—which focuses on the production of botanical extracts for pharmaceuticals, dietary supplements and cosmetics—to streamline its portfolio in businesses that offer critical mass and bring competitive synergies in its key markets, according to a press release. Botanicals extracts generated net sales of approximately €9 million in 2007.
“We are very pleased about this agreement with Burgundy," said Stéphane Baseden, executive vice president, nutrition & health, Cognis. "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.”
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.
“The acquisition of the botanicals extracts business is totally consistent with our growth strategy,” said 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.”