Cognis, Natural ASA Strike Deal for Global CLA Business

DUSSELDORF, Germany--The rights to Natural ASA's CLA products, intellectual property and trademarks are in the midst of changing hands. Germany-based Cognis B.V. (www.cognis.com) and Norwegian-based Natural ASA (www.natural.no) announced they have signed a Memorandum of Understanding to grant Cognis an exclusive license to Natural ASA's conjugated linoleic acid (CLA) IP, its technology and its trademarks. The agreement includes rights to the worldwide marketing and manufacturing of Natural ASA's CLA products and technology for dietary supplements, functional foods, personal care products and pharmaceuticals. The agreement is expected to be finalized in enough time to allow Cognis to begin assuming responsibilities for Natural ASA's business activities in July 2002.

Natural Inc.'s U.S.-based office in Vernon Hills, Ill., will continue its sales and marketing functions as part of Natural ASA during this transition period, and current Natural Inc. customers should continue business as usual with their sales representatives until the agreement is finalized.

The future of Natural Inc. "is yet to be determined," according to a company spokesperson, although there are several other ingredients in the R&D pipeline at Natural ASA. The company also stated that until the agreement is finalized, it is too preliminary to discuss details of the proposed transaction.

"Our top priority while the licensing agreement for Tonalin(R) CLA is being finalized between Natural ASA and Cognis is continuity of customer service and satisfaction," said Didrik Herlofson, vice president of Natural Inc.

According to Paul Allen, vice president of La Grange, Ill.-based Cognis Nutrition and Health, "As in other new business ventures, we will work hard to make this a seamless transition for Natural's customers. . Once the transition is complete, the intention is for Cognis to take over operational responsibility for sales, marketing, manufacturing and science."