Frutarom Industries has acquired Israeli Biotechnology Research (IBR) for $21m.

The deal is expected to strengthen and expand Israel-based Frutarom’s entry into the natural active fine ingredients market for the cosmetics industry.

IBR is a developer of active natural fine ingredients for the cosmetics and dietary supplements industries. The transaction involves the purchase of 100% shares in IBR, which was financed through bank debt.

“We continue to expand our portfolio of unique and natural products, already constituting 75% of our sale volume.”

Frutarom Group president and CEO Ori Yehudai said: “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.

“We continue to expand our portfolio of unique and natural products, already constituting 75% of our sale volume.”

IBR’s natural active ingredients are mainly focused on cellular and skin anti-ageing, skin protection from ultraviolet (UV) rays and air pollution, skin whitening and pigmentation prevention.

With a sales turnover in 2017 totalling nearly $7.4m, IBR has a broad customer base, in the US, Europe and Asia, including leading cosmetics and personal care companies.

IBR’s researchers will join Frutarom’s global research and development (R&D) teams, and support activities in the fields of algae-growth and active ingredients extraction for personal care and skin protection.