Gadot Acquires Majority of Pharmline

FLORIDA, N.Y.Gadot Biochemical Industries Ltd., Haifa Bay, Israel, acquired 85 percent of the shares of Pharmline Holding, a private ingredient supplier based here. Financial details were not disclosed, although Pharmlines 2006 revenue was listed as $37 million; the deal should be completed by late June.

The acquisition of Pharmline is in line with Gadots growth strategyfocusing on the nutraceutical and functional food markets, said Jacob Zack, chief executive officer (CEO) of Gadot. Pharmline is an important link in the supply chain to these markets and this acquisition will enable Gadot to diversify its products line and to broaden its customer base in North America.

Gadot currently supplies crystalline fructose, citrate sales and enrichment minerals, while Pharmline is a broad supplier of dietary ingredients and fine chemicals, with specialization in custom formulations and contract manufacturing technologies. According to Gadot execs, the move will enable the company to expand its ingredient offerings for the nutraceuticals industry and broaden its reach into the functional food industry, with the aim of providing processed, custom-made ingredients and premixes.

The functional food industry poses a great growth opportunity for ingredient suppliers and we definitely want to take part in this fast growing market, said Ronny Hacham, vice president of business development and marketing at Gadot. Adding Gadots capabilities and vast experience in ingredients and applications development to Pharmlines excellent technology will create a strong platform for offering tailored premixes as well as ingredients tailored to customer-specific requirements.