Naturex founder: “After Asia, acquisitions will be European and North American”
The world’s biggest botanical extracts supplier has made much of its ambition to boost its presence and sales in developing regions like Asia, the Middle East, Africa and Latin America, but Dikansky confirmed expansion in North America and Europe remained key to the company’s seemingly endless drive to expand – and rapidly.
“We expect the Asian deal to close by the end of March, and after Asia our other specific targets will be European and North American,”he said, acknowledging that slower demand in the traditional markets did not necessarily mean that production could not go on in them.
“Of the few deals we expect to close, some are in the food area, some are more nutritional such as botanical extracts.”
The Asian acquisition will not add to the company’s portfolio but give it boosted production capacity in natural ingredients in the region that grew faster than any other at 16.7% to reach €28.56m in 2011, compared to €92.5m for the Americas (up 10%) and a 10.3% gain in Europe to €51.7m.
Its overall 2011 results, announced last week showed growth of 12.3% €253.6m.
“We see very good opportunities in Asia, eastern Europe, latin America,” he said, noting China, Thailand, Brazil, Mexico and Russia as zones of particular interest. “If North America and Europe slow, they will be compensated by the emerging markets. We think 2012 will be a special year where we will be very busy with acquisitions.”
He said the company was actively seeking acquisition targets in latin America to further boost local production capacities after it gained a facility when it paid €110m for Spanish player, Natraceutical in 2009.
The Natraceutical plant was being expanded to develop, “colour production capacity” by April this year. Extracts will come on line in 2013.
Dikansky also relayed that the cosmetics area that represents just €3m in revenue, would represent an increasing “percentage of business over the years”.
Dikansky said the €16m acquisition of fellow French supplier, Burgundy, “had been difficult one due to their financial situation” but the that the integration had been rapid (“done in three months”).
Naturex has locations in 18 countries.