Under the terms of the agreement, Orgasynth’s subsidiary Orgarome will acquire the operations relating to distilling, the herb trade and the supply of fragrance ingredients.
This will involve, among other things, acquiring the equipment and stock of the Sanoflore division and taking on the existing client base, contracts and the 6 employees involved in the business.
According to Orgasynth, the integration of Sanoflore’s raw materials business (located in Drôme, France) into the company will contribute approximately €1.6m to its revenues.
Orgasynth first announced its intention to acquire Sanoflore’s raw materials department in September last year.
Sanoflore’s Director General Elisabeth Araujo said in a statement that the company wanted to “focus on research, development and commercialization of products, both in France and internationally to make Sanoflore a great success.”
Orgasynth active in natural and organic ingredients
Orgasynth is already active in the field of natural and organic ingredients through its subsidiaries in the Ukraine and Comores, and this latest acquisition is expected to help the company strengthen its position in this area.
According to Orgasynth, it expects to build up a broad portfolio of essential oils, hydrosols (floral waters) and organic herbal ingredients.
The company will also benefit from a distillery dedicated to the production of essential oils and organic hydrosols, and a long-term partnership with Sica Bioplantes, a group of 50 farmers in South-East France that farm 300 acres of organic plants.
Orgasynth has also signed a research partnership agreement with L’Oreal which is related to the sourcing and processing of raw materials for application across various Orgasynth business divisions.
Production unit sold to Fareva
Cosmetics giant L’Oreal acquired Sanoflore in 2006, which then became part of its Cosmetics Actives Division.
In addition to the divestment of Sanoflore’s raw materials business to Orgasynth, the company’s production unit was sold to France-based Fareva Group.
The manufacturing facility was integrated into the Fareva Group at the beginning of the month and renamed Farevabio.