Lonza buys Larex's arabinogalactan assets
its ingredients portfolio, with the acquisition of the larch
arabinogalactan assets of US firm Larex.
Larex was recently called "undoubtedly the market leader in the arabinogalactan segment" by Frost & Sullivan research analyst Haricharan Desai, when it won the 2004 Product Innovation award for the development of its FiberAid AG branded product.
The value of the acquisition has not been announced at this time, but includes intellectual property, processing technology, manufacturing operations and certain inventory and customer lists.
Lonza's plan to expand its nutrition portfolio kicked off in December with the acquisition of Nutrinova's DHA business, striking out from niacin, or vitamin B3, and the vitamin-like substance L-carnitine to food and supplement makers.
However larch is also used for a variety of cosmetics functions, including as an emulsion & suspension stabiliser, reduction of TEWL, skin cell exfoliation, beautification and hair curl retention.
The addition of the Larch Arabinogalactan (LAG) assets is said to complement the existing product line.
A branched polysaccharide, LAG is extracted from western larch (L occidentalis) and tamarack larch trees using the company's patented water-wood-and-steam process. Larex works in collaboration with several timber companies and the by-products of the process are used in the manufacture of wood products.
The soluble, tasteless and odourless prebiotic fibre can be added to food and beverage products to boost their fibre content, while it is also said to be highly compatible for a host of cosmetic formulations.
Larex clients that have used LAG in their products to date include Kraft, Pepsi, Coke, Procter & Gamble and Johnson & Johnson.
Larex's 20,000 square foot manufacturing facility has the capacity to produce eight million pounds of LAG each year.
Last month the group unveiled a strategic investment of $200m in its operations in China, aimed at boosting all the business including its rapidly expanding nutrition business portfolio.
"This project will mark another important milestone in Lonza's long-term strategic plan. It is a key element in achieving the targeted growth for Lonza," said CEO Stefan Borgas.
