Kiotech, the international supplier of natural high performance feed additives to enhance growth, health and sustainability in agriculture and aquaculture, has asked shareholders to approve a merger with Optivite. The shareholder meeting will take place on 30 September 2009, after which and subject to approval, the merger will be completed.

Optivite Group is one of the UK's largest independent animal nutrition and feed additive businesses with a turnover approaching £18 million. It specialises in the design, development and manufacture of non-hazardous, drug-free animal products for the maintenance and enhancement of feed quality, giving better health and yield performance. Specifically, its products include organic feeds, premixes, fatty acids, concentrates and enzymes. The range also includes an omega-3 fatty acid supplement for the pig, poultry and ruminant markets.

"Combining Kiotech and Optivite will create a stronger company and allow us to pool resources offering our customers access to a broader range of products and technical support," said Kiotech chief executive, Richard Edwards. "It will also allow us to drive further growth and market share by enabling faster access to new products and new markets. As both the Optivite and the Kiotechagil brands have significant value, both brands will be retained in the market place, supported by their respective teams."

Kiotech, which is an AIM listed company was originally incorporated in 1997. It has been developing the use of pheromone attractants (chemical signals secreted by fish when feeding) for use in the sports fishing, aquaculture and commercial fishing markets in collaboration with UK government agency Cefas (Centre for Environment, Fisheries and Aquaculture Science). In 2006, it acquired Agil, a manufacturer and global supplier of natural feed additives whose products include acidifiers and feed stabilisers such as Salkil, pHorce and Sorbatox primarily used in the pig and poultry markets. The Company now trades under the name Kiotechagil.

Optivite chairman, Richard Scragg, who will join the Board at completion of the deal, commented: "By joining with Kiotech, our group will be stronger in terms of people, knowledge and production so better placed to face the challenges of the future. We will also have more resources for new product development and the stronger business will offer increased opportunities for employees, customers and suppliers alike."

The enlarged company has ambitions to retain and grow international market share. Kiotech currently supplies to more than 50 countries worldwide and Optivite to more than 30 and it is estimated that around a third of the enlarged group's sales will be overseas.