Trilantic Capital Partners, set up last year by the former principals of Lehman Brothers Merchant Banking, has said it will purchase a “substantial minority interest” in the ingredient firm.
Fortitech focuses on the manufacture of nutrient premixes for use in a range of products including baby formulas, cereals, bars, dairy products, nutrition and sports drinks, juices, snacks, waters and confectionery. Its custom nutrient premixes address a wide range of conditions, including gut health, heart disease, diabetes, bone health and brain health.
According to Trilantic, which focuses on investments in consumer, energy and financial business services, Fortitech has “attractive growth characteristics”. The firms hope their partnership will enable Fortitech to “continue to drive its global growth initiative”.
“Trilantic’s investment provides us with the capital to help us realize our full growth potential and will support our continued expansion in global markets,” said Walter Borisenok, president and co-founder of Fortitech.
“Our partnership with Trilantic will allow us to enhance our leadership position in the fast-growing market for fortified and functional food, beverage and pharmaceutical products.”
Global expansion
The company, which is headquartered in Schenectady, New York, has facilities in New York and California, Europe, Asia, Mexico and South America. In recent years, it has also invested in Africa, Russia and Eastern Europe, and has expanded operations in other global regions.
Last year, Fortitech completed an 88,000 square foot facility in Kuala Lumpur, Malaysia, which handles all its business in the Asian markets. The company also added 35,000 square feet to its Schenectady facility and built a new warehouse distribution facility nearby. Several years ago, it also completed a plant in Ontario, which handles all its west coast business, and last year it completed a 48,000 square foot facility in Glenville.
Moving forward, Fortitech said it is also planning on doubling the size of its facility in Campinas, Brazil, to 60,000 square feet.
“There’s been a lot of expansion and investment in our facilities over the last five years. We’re also constantly looking at redefining our business to strengthen our core capabilities,” said Richard Schleif, the firm’s director of marketing.
He told NutraIngredients-USA.com that the terms of the agreement with Trilantic are confidential, but said that existing shareholders will continue to control and manage the business.
“There will be no management or operational changes, it’s business as usual,” he said.