Zinzino AB announced it has acquired 35% of shares in Xion International Group. The strategic acquisition is part of Zinzino’s broader goal of further developing its own production of omega-3 oil and spirulina. This joint venture is expected to help meet increased demand as Zinzino continues to expand globally, and will contribute to its goal of being positioned as a global leader in high-quality omega-3 products in the future.
This move is also a strategic next step in Zinzino’s joint project to develop the cultivation method and production of microalgae. Zinzino owns 55% of the shares in that project, which it believes will secure a future sustainable supply of omega-3 for its polyphenol-rich, omega-balancing dietary supplement BalanceOil+.
“Sustainable solutions are the future,” said Dag Bergheim Pettersen, Zinzino CEO. “Fish oil is a finite resource. Through our expanded collaboration and future partnership in Xion, we are securing an incredibly important raw material resource without increasing our climate footprint, while strengthening and advancing our brand protection.”
Xion is currently a small-scale operation with an annual turnover of approximately $1.5 million, and most of its production goes to Zinzino’s existing spirulina-based products. With this partnership, Zinzino gains access to Xion’s IP rights, giving it potential to further develop and increase brand protection for Zinzino’s product portfolio.
“Zinzino will continue to invest in future solutions in algae technology and bioreactors,” said Bergheim Pettersen. “Together with Xion, we intend to form a specialized omega-3 company under the name PhytoFerm in which Zinzino owns 55% of the shares. This will be a pure algae company focused on next-generation sustainable nutritional solutions.”
The newly formed Phytoferm will combine photobioreactors and fermentation with Xion’s HYBRID platform.
This acquisition was made for a fixed price of $1.3 million and is part of a pattern of strategic acquisitions as Zinzino looks to maintain sustainable, profitable growth and strengthen its distributor power, expand into new markets, secure its raw material assets and leverage its product portfolio in new consumer areas.
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