British private investment company Grovepoint has acquired a majority stake in Algatechnologies, an Israel-based producer natural astaxanthin and other microalgae-derived products.

The financial details of the transaction have not been disclosed.

The technology used by Algatechnologies facilitates the large scale cultivation of microalgae Haematococcus pluvialis at its production facility in Israel, which features about 300km of glass tubing.

The cultivated microalgae is used to develop the company's leading commercial ingredient, astaxanthin, a powerful natural antioxidant for human consumption. The antioxidant is also used in cosmetic applications.

Grovepoint noted that there is a significant scope to expand the number of products where astaxanthin is the key ingredient and to tap the potential of microalgae derived products for other commercial uses.

Grovepoint also plans to provide additional capital for expanding the business; marketing Algatech's 'Astapure' brand; and investing in research and development, in order to introduce new algae derived products to market.