Canada's Sentex Systems has completed its takeover of Natunola Health first announced in April.
Natunola will continue to operate as before under the direction of its founder and president Dr Nam Fong Han, although it will become an operating unit of Sentex' NutriBios subsidiary.
Natunola Health produces ingredients for the functional food, nutraceutical and value-added feed industries. The company said that construction was underway on a new flax dehulling plant at Natunola's existing oil gel processing facilities in Winchester, Ontario, and production is expected to begin there by the end of the year.
Natunola extracts omega-3 fatty acids, lignans and fibres from the kernels, hulls and by-products of the flax which are then used in a variety of products designed to help reduce cholesterol levels and the risk of heart disease.
Sentex was set up to develop businesses in the nutraceutical and functional food sectors, and its NutriBios subsidiary has already begun making a name for itself in the market for natural bio-nutrients. These are promoted as natural substitutes for antibiotic growth promoters that are being banned in many countries of the world.
Sentex said that combining Natunola's flaxseed-based products with the bio-nutrients produced by NutriBios would create a series of novel natural products with a broad appeal in the market place and which could be readily sold through the marketing arms of both companies.
"We remain excited about the prospects for early implementation of the flax project and its positive effect on Sentex' future growth " said Brian Rouleau, president of Sentex Systems.