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Frutarom Acquires Israeli Biotechnology Research

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Frutarom has purchased 100% of the shares of Israeli Biotechnology Research (IBR), the company announced. The $21 million transaction was completed upon signing.

IBR researches, develops, manufactures and markets natural active ingredients to be used in cosmetics and dietary supplements, primarily in the fields of anti-aging, skin protection from air pollution and UV rays and whitening and pigmentation prevention. The company reported a 2017 sales turnover of $7.4 million and an average annual growth rate of 20% over the last four years.

Related: Frutarom Completes Acquisition of Enzymotec

The acquisition is part of Frutarom’s growing activities in active ingredients extraction for personal care and skin protection products. In 2015, the global active ingredients market for cosmetics was valued at approximately $2.63 billion, driven by a rise in standards of living, the growing male consumer segment and an increase in demand for natural, environmentally-friendly cosmetics products; anti-aging and sun care products are also expected to be market drivers. IBR researchers will join Frutarom’s global R&D teams on natural active ingredients.

"The IBR acquisition is yet another strategic acquisition of activity in Frutarom’s growing core field which will enable us to offer our customers a broader portfolio of innovative solutions, and an important step in implementing Frutarom’s strategic plan to develop worldwide business in to the growing and profitable fields of natural cosmetics,” said Ori Yehudai, Frutarom president and CEO. “We continue to expand our portfolio of unique and natural products, already constituting 75% of our sale volume."