Israeli food additive supplier buys into booming meat processing market
activities through the acquisition of Brazilian food additive
manufacturer Adicon Industria E Comercio De Aditivos.
The deal, carried through one of Israel Chemicals four business units, has agreed to acquire the assets of Adicon Industria E Comercio De Aditivos Ltda, a privately-owned Brazilian manufacturer and supplier of functional food additives for the meat industry.
ICL Performance Products' business unit Food, a producer and distributor of food additives, will merge Adicon with another of its companies already active in the Brazilian food additive market.
On the back of a rise in demand for processed meats, sales of Adicon's products, used primarily by Brazil's meat processing industry, have been rising steadily during the past several years, says ICL, reaching about 23 million Brazilian Real (approximately €7.91million) today.
Brazil's meat industry is the third largest meat exporter in the world.
The addition of Adicon's products complements ICL Performance Products' business unit Food, "whose food additives are downstream products derived from the ICL group's specialty phosphates," says the Israeli business.
In 2004, ICL Performance Products' reported revenues of €486 million.
Investors apparently liked the news, reports the Israeli press, which is expected to double Israel Chemicals' business in Brazil, and pushed the share up 1.3 per cent.
