Apple-Inspired Flavor Tops NovoSana’s $66M China Asset Deal in Supplements

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Apple Flavor & Fragrance Group plans to invest up to CNY450 million (USD66 million) to acquire all of the China assets of a Dutch company, NovoSana (Europe), as part of its strategy to expand into the nutritional and health supplement raw materials sector.

The company announced that the acquisition will be completed in two phases. Initially, it will pay CNY360 million (USD53 million) for an 80% stake in a biotech firm based in Taicang. Three years later, it will purchase the remaining 20%, with the final payment amount linked to the performance of the Taicang entity from 2026 to 2028. This secondary payment could range from a minimum of CNY10.8 million (USD1.5 million) up to CNY90 million.

Founded in 2007 by a company based in Weesp, NovoSana (Taicang) specializes in the research, production, and sales of Omega-3 ingredients like fish oil and algae oil. Its main offerings include refined fish oil and concentrated fish oil, catering to global markets in health supplements, functional foods and beverages, infant nutrition, and pet food.

This acquisition is set to help the company shift from a conventional food ingredients supplier to a key player in delivering integrated flavor and nutrition solutions worldwide. It will also facilitate expansion into more lucrative segments such as functional foods, dietary supplements, maternal and infant nutrition, and pet foods, enhancing overall risk resilience.

Thanks to NovoSana (Taicang)’s consistent profitability, the deal is expected to enhance the company’s revenue structure, boost overall profitability, optimize resource distribution, and reduce operating costs through operational synergies.

Earlier in December 2024, NovoSana (Europe) agreed to sell a 75% stake in NovoSana (Taicang) to Shandong Xinhua Pharmaceutical, which owns a health supplement business. However, that deal was called off in February after the two parties couldn’t agree on a price.

The company’s stock price remained largely unaffected by the announcement, closing down 1% at CNY10.61 (USD1.50) per share, while the Shanghai Composite Index declined slightly by 0.2% for the day.