EID Parry buys 48% stake in US firm for $9 million

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Chennai, Nov 21 : Sugar and nutraceuticals major EID Parry (India) Ltd, part of the Murugappa group, has acquired 48% stake in the Florida-based US Nutraceuticals, LLC, a privately-held company, for a consideration of $9 million. The US company is engaged in the nutraceuticals business under the name of Valensa International and its turnover is estimated to be around $8 million to $9 million. The deal makes EID Parry will become the major shareholder of the company, said D Kumaraswamy, President (Bio, Nutraceuticals & Corporate Affairs), EID Parry.

Talking to FE, he said: "The acquisition of majority stake in Valensa International will help company to sell its products across the US, where the latter has wider wholesalers and retailers network for its value-added products. It is a forward integration for us. We expect this acquisition will add more value to EID Parry's nutraceuticals business in the years to come." With this move we expect to double our nutraceuticals business during next year, he added.

According to him, apart from manufacturing value added products, the US company has also a big marketing network in the Europe and other countries. EID Parry can also bring in the US companies products to sell in India and other Asian markets, he added.

In a communication to the stock exchanges, EID Parry said that Valensa is a key player in the global astaxanthin market and has good product conceptualisation skills and patent protected product formulations. Investing in Valensa will benefit EID Parry's nutraceuticals business by having access to sicence-based product patents, extraction technology and market access to the US and EU countries.

EID Parry is the manufacturer and exporter of certified organic Spirulina and Carotenoids like natural beta carotene, astaxanthin and tomato lycopene. The company is a global leader in microalgal technology and has commercialised three major sources nutraceuticals such as Spirulina, Dunaliella salina and Haematococus pluvials.