Sweden-based personalised nutrition company Zinzino has acquired a 49% stake in the Cypriot olive oil producer Cleanthi Alpha-Olenic (Cleanthi).
Cleanthi produces olive oil with its unique and patented process of pressing, without the use of artificial fertilisers or pesticides.
The company uses certified Koreneiki olives from orchards owned by farmers for several generations.
Its manufacturing process enables up to 30 times the polyphenol content of regular olive oil.
Cleanthi is currently running a small-scale business, with most of the production being used by Zinzino for its existing products R.E.V.O.O. and BalanceOil Premium.
The Swedish nutrition company said that the acquisition is an important step in its strategic growth, focused on improving personal health and well-being on a global scale.
Zinzino CEO Dag Bergheim Pettersen said: “Individual advice and customised solutions are the future, and not just in health and wellness.
“By working with Cleanthi, we are strengthening and advancing our brand protection and securing important olive oil production.”
Under the terms of the agreement, Zinzino will acquire 49% shares of Cleanthi, in exchange for a fixed purchase price of €1.9m at closing, of which €1.2m in newly issued Zinzino shares.
In addition, Cleanthi will receive €0.5m through a new issue of Zinzino, while Zinzino receives an option to acquire an additional 1% of the company from the sellers for €1.
The Swedish company intends to finance the cash portion of the transaction consideration and the new share issue through cash available in hand.
Through the transaction, Zinzino will get access to Cleanthi’s IP rights, which will allow the company to develop and enhance brand protection for its BalanceOil brand.
BalanceOil currently accounts for about 60% of the company’s total revenue.
Zinzino aims to expand production at Cleanthi to secure the olive oil supply for the increased internal demand arising from its global expansion and high sales growth.
Simultaneously, the company aims to increase external revenues for Cleanthi, similar to the model previously used successfully for its manufacturing unit, Faun Pharma in Norway.
