TerraVia agrees to sell majority interest in Algenist skincare brand

Food, nutrition and specialty ingredients company TerraVia has signed a definitive agreement to sell a majority interest in the Algenist skincare brand to private investment firm Tengram Capital Partners.

Under the terms of the transaction, Tengram and TerraVia have also formed a partnership that will see TerraVia’s algae-based ingredient platform and Tengram’s brand-building and investment expertise being leveraged to seek new opportunities in the beauty industry.

The Algenist beauty brand was launched in 2011.

This brand offers anti-ageing and colour correcting products based on a suite of TerraVia’s proprietary algae-based ingredients, including alguronic acid and microalgae oil.

It has a global distribution footprint across 23 countries, and its products are sold in major retail channels such as Sephora, Ulta and QVC.

TerraVia co-founder, chairman and CEO Jonathan Wolfson said: “This partnership allows us to focus our captive commercial operations on foods and nutrition, while maintaining participation in Algenist’s future success and gaining access to Tengram’s expertise and leadership to participate in beauty and personal care opportunities commercializing our proprietary algae platform.”

Following completion of the deal, TerraVia will retain a stake of approximately 20% in Algenist and continue to supply ingredients formulated in the Algenist product line.

Tengram will also contribute significant capital to the business to speed up commercialisation. At close, TerraVia will receive around $20m.