Pharmachem acquires botanical extraction business
R.J. Reynolds, giving it control of the largest botanical
extraction facility in North America and allowing it to expand
production of its own botanical ingredients.
Pharmachem Laboratories, the Kearny, NJ-based health ingredients supplier, has announced the acquisition of the Avoca division of R. J. Reynolds Tobacco Company, a business which specializes in the extraction of botanicals for the fragrance, pharmaceutical and dietary supplement industries.
The deal, which also involves the Avoca senior management, will see Pharmachem take over what is the largest botanical extraction facility in North America at 172,000 square feet.
"This acquisition not only provides the added manufacturing capacities we need for our expanding extraction and drying business, but also gives us an R&D capability unmatched in the natural products industry," said David Holmes, founder and president of Pharmachem International.
Avoca, which will function as a subsidiary of Pharmachem, has a current extraction capacity of 90,000 tons per year, including a continuous-flow Crown extractor with a daily capacity of five to 10 tons. Pharmachem is already planning a major expansion there for increased capacities and technologies.
In addition, Avoca has its own internal quality control and research laboratories for process control and product development. The facility meets industry standards for current good manufacturing practices (cGMP). It features on-site storage of raw materials and a cGMP finished goods warehouse.
Pharmachem Laboratories is the supplier of numerous ingredients and ingredient systems, including Phase 2 starch neutralizer, used in a number of weight loss products sold worldwide. The company operates four processing and manufacturing facilities in Northern New Jersey, including the H. Reisman Corporation. Pharmachem also owns American Ingredients, based in Anaheim, CA.
