Fortitech is to buy ingredient distributor Ashland Distribution Company's nutritional premix blending business, increasing its delivery capabilities for the west coast market. Financial terms were not disclosed.
The privately-held firm, which claims to be the world's leading manufacturer of custom developed nutrient systems, will take over Ashland's premix manufacturing operation located in Fontana, California. The sale is expected to be completed in September 2003.
Walter Borisenok, president of Fortitech, said the acquisition marks a "milestone" for Fortitech's expansion efforts in North America. "It amplifies Fortitech's capabilities, providing us with a manufacturing, sales and distribution center on the West Coast that allows for greater operational efficiencies and enhanced customer support. As a result, customers will benefit from improved service, flexible batch sizes and timely delivery," he said.
Within the last year, Fortitech has also added manufacturing operations and research and development capabilities in Denmark and Malaysia. The Ashland facility will be its second manufacturing and distribution plant in the United States. The deal will probably lead to new posts in customer service, sales and operations, said Fortitech.
Ashland Distribution, a division of Ashland, said it was looking to sharpen its focus on the core activities of sales and marketing. The company has worked with Fortitech for some time.