Ireland-based industrial biochemicals company Cellulac is planning an expansion into new markets including personal care through a €1m acquisition of rival Irish biotech firm Aer Sustainable Energy.

Celluac said in a statement that the purchase would enhance the company’s production capabilities in the bioplastic ingredients and biochemical sectors by adding “cosmetics and aviation biofuel to the core institutional knowledge of the Cellulac technology platform.”

The acquisition is the latest announcement from ambitious firm Cellulac, which has recently invested €25m into a redevelopment of its manufacturing plant in Dundalk, Ireland.

Dr Alan Hernon, CEO of Aer Sustainable Energy, commented, “We are excited to have joined one of Europe’s fastest growing bio-based industry companies and believe that joining the Cellulac group offers our combined technologies greater opportunity to reach a wider global bio-economy audience.”

Aer Sustainable Energy, also known as Aer-Bio, specializes in an enzyme-based process delivering a revolutionary ‘wet’ extraction method for manufacturing bio-based oils, proteins and other valuable products from Algae. Products that can be extracted and refined using these methods include functional food products such as Omega-3 oils, personal care ingredients, industrial oils and aviation biofuels. Shareholders include Irelandia Investments, Tedcastle Oil, AIB-Seed Fund and Enterprise Ireland.