AlgaEnergy to become DE SANGOSSE wholly owned AE AGRIBIOGICALS

Following an extensive restructuring, AlgaEnergy partners with DE SANGOSSE Group through a soon to be finalized deal that will enable a concentrated focus on its agricultural markets. Previous business verticals including cosmetics, bioenergy, aquaculture and nutraceuticals will be discontinued, allowing a single-minded focus on solutions for agricultural markets, specifically agribiological inputs (biostimulants, biofertilizers and biocontrol).

The new agricultural business unit, wholly owned by DE SANGOSSE and named AE AGRIBIOGICALS, S.L. -AEA-, will make it possible to expand the microalgae biotechnology activities pioneered by AlgaEnergy S.A. worldwide, now through a vehicle exclusively dedicated to the agricultural sector.

DE SANGOSSE, a French group of companies, is a global leader in agricultural biosolutions. On the strength of its recognized experience, DE SANGOSSE has been operating with agility and success for many years globally in agricultural supplies by promoting a process of progressive and sustainable crop itineraries. With 1,150 employees, a turnover in excess of 420 million euros, 23 production units, 27 operating companies and sales in more than 60 countries, DE SANGOSSE has established itself as one of the world's leading providers of innovative and sustainable solutions for agriculture.

The legal advisors and M&A experts of both entities have designed an agile investment process, in line with the needs set by the context of the company and the transaction itself, which involves the liquidation of AlgaEnergy S.A. The deal is now in the last steps towards its completion and pending approval by the competent bodies. In this context, AlgaEnergy S.A. will be substituted by AEA, and all its subsidiaries around the world will continue with business as usual, as they were already commercial entities dedicated exclusively to agriculture. Once the process is completed, all assets and value related to the agricultural business will be transferred to the new company, AEA, including the AlgaEnergy brand, which will continue to be used in the market.

Importantly, the partnership with DE SANGOSSE will ensure the consolidation and enhanced development of the industrial biotechnologies as well as the innovative, sustainable and efficient products derived from microalgae (a.k.a. phytoplankton). As part of this transaction, AlgaEnergy’s main assets will be incorporated into AEA, including nearly 100 employees from the various companies that make up the AlgaEnergy group, as well as its production and processing plants, its international network of subsidiaries, its technologies, patents and trademarks related to agriculture, and its commercial network, which already serves more than 4 million farmers who rely on the solutions developed by AlgaEnergy worldwide.

With focused resources -estimated in double-digit million euros figure-, DE SANGOSSE will contribute to improve the position of the AlgaEnergy group of companies as a global leader in microalgae for agriculture, through the increase of specialized personnel in this area of science, investments in CAPEX, improvement of facilities, agricultural R&I, marketing, etc.

On the occasion of this strategic association, Mr. Nicolas Fillon, CEO of DE SANGOSSE Group, made the following remarks:

″Over the last 15 years DE SANGOSSE, has grown to become an international agricultural technology company. We focus on addressing agricultural key-challenges, providing to our customers alternatives to conventional chemical-based pesticides and fertilizers for a more sustainable food supply and for an enhanced biodiversity. As a leader in biosolutions, our proprietary portfolio is offering to farmers a complete range of biofertilizers, biostimulants, adjuvants and biocontrol products. It is part of our philosophy to invest in innovation and the most efficient solutions based on sound science and robust technical features, so AEA and DE SANGOSSE have the perfect fit. We combine exceptionally innovative and differentiated technologies, with our experience in biosolutions business models, successful in more than 60 countries. AEA spent decades in research and has invested a lot to develop this microalgae-based unique portfolio. The team know-how is incredibly extensive. Together, we will be able to improve and accelerate our global biosolutions footprint. We will be very excited to start working with such an experienced and dedicated team.″

For his part, Mr. Carlos Rodriguez-Villa Förster, Managing Director of AlgaEnergy group, commented as follows:

″We share relevant synergies and the same values, as well as a long-term vision. There is an absolute complementarity both in terms of portfolio and geography, so it is reasonable to predict that the synergies will materialize in an exponential growth in turnover. After months of working together in this process that we expect to be finalized soon, we are totally convinced that this new stage we are starting, hand in hand with DE SANGOSSE, is going to be very positive for the company as a whole, its team, its customers and its collaborators. Together, we have a very competitive value proposition that is fully aligned with the objective of promoting a modern agriculture that is efficient, regenerative and, above all, more profitable for the farmer, now and in the future."

About AE AGRIBIOLOGICALS

AE AGRIBIOLOGICALS is the recently created legal vehicle based in Spain, owned by the DE SANGOSSE, which has acquired and will channel the entire agricultural business of the AlgaEnergy group internationally. It has 9 subsidiaries in different countries, employs approximately 100 professionals, operates in about twenty countries and offers high added value biological solutions, based on microalgae, to optimize agricultural yields in a sustainable way in all types of crops and geographies.

About DE SANGOSSE

DE SANGOSSE (Agen, France) is a French group operating at international level. On the strength of its recognized experience, DE SANGOSSE has been operating with agility and success for many years in the world of agricultural supplies by proposing a process of progress and sustainable crop itineraries. DE SANGOSSE employs 1,150 professionals, has a turnover of more than 420 million euros, 27 operating companies and 23 production units around the world, and sales in more than 60 countries. DE SANGOSSE is therefore a benchmark agricultural company, a leader in the development of crop protection and nutrition products. The reinvestment of its profits is an identifying feature, as is the strong commitment to R&I, which ensures the group remains at the forefront of its market. 

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