Sentex Systems, the Canadian agrifood group, has announced its intention to buy compatriot Natunola Health, a company which develops natural health products from flaxseed. The purchase price will be dependant on the operating results of Natunola over the next three years, and the acquisition should be completed in June.
Natunola was founded to develop and market high value-added natural health-related products for various market sectors, and has developed processes for high-margin, high volume applications in the functional food, nutraceutical and value-added feed industries. The original emphasis of Natunola was on the development and sale of patented vegetable oil gels for cosmetics and personal care products, as well as the veterinary industry.
Its core business focuses on the processing of flaxseed in order to capitalise on the rapidly growing market for foods containing omega-3 fatty acids, lignans and fibres, which are known to contribute to retinal and brain development and may play a major role in reducing cardiovascular disease. The flaxseed kernel is a primary source of omega-3 fatty acids, while the hull contains very high concentrations of lignans and fibres which may be used in the prevention and treatment of certain diseases, including cancer.
Sentex said it would invest heavily in the construction of a new flaxseed dehulling plant in Winchester, Ontario, which will enable Natunola to produce kernels and hulls from the flaxseed. The kernels and hulls will be sold as food, functional food, nutraceutical and value-added feed additives.
Natunola will continue to operate as a stand-alone entity for Sentex under the direction of its president and CEO, Dr. Nam Fong Han.
The Natunola deal will increase Sentex' presence in the agri-biotech feed additive industry. Its wholly owned subsidiary, NutriBios, already produces additives derived from natural sources for the livestock, poultry and aquaculture industries. These products are designed to be a natural substitute for antibiotic growth promoters that are being banned in many countries of the world.
"The addition of Natunola to the Sentex group will bring increased opportunity and large new markets to Sentex," said Brian Rouleau, president of Sentex Systems.