Israel’s ICL, a global manufacturer of products that fulfill essential needs in the agriculture, processed food and engineered materials markets, announced that its ICL Food Specialties business unit (“ICL FS”) has entered into a share purchase agreement (“SPA”) to acquire Prolactal GmbH, and its subsidiary, Rovita GmbH (collectively, “Prolactal”). Prolactal, based in Hartberg, Austria, and Engelsberg, Germany, is a leading European producer of dairy proteins and other ingredients for the food and beverage industries. The transaction is expected to close during the first quarter of 2015, subject to the receipt of regulatory approvals in Austria and Germany.
Prolactal, a privately-held company with annual revenues (2014) of approximately €100 million, produces and sells an extensive range of functional dairy proteins used broadly in the beverage, dairy and meat industries to stabilize and improve the nutrition of beverages and foods processed under a variety of conditions. The combination of ICL’s existing phosphate capabilities and Prolactal’s protein capabilities will enable ICL Food Specialties to provide innovative, value-added ingredient systems that outperform other solutions available today, as well as open up new market opportunities. The combined operations will also increase ICL’s ability to service its existing clients by offering them a broader selection of texture and stability ingredients, including Prolactal’s ‘Prolactal’ and ‘Rovita’ product lines, to better meet the growing demand by consumers for food and beverages with higher protein levels.
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Prolactal, which employees approximately 200 people, operates two plants utilizing state-of-the-art production process technology capable of complete fractionation of milk. Prolactal’s CEO, Mr. Johann Tanzer, has agreed to remain at Prolactal following its sale to ICL and he will join ICL Food Specialties’ senior management.
ICL Chairman, Mr. Nir Gilad, stated, “ICL’s Board of Directors views the Food market as one of the core markets in which we are determined to grow our business significantly. The Company’s ‘Next Step Forward’ strategy, which was approved by the Board in Spring 2013, sees major growth potential for the Company deriving from ICL’s use of its various raw materials together with technologically advanced solutions to create modern, healthy foods and beverages, and to enter new, growing markets. We believe that the acquisition of Prolactal will serve these purposes, and will provide us with an opportunity to expand synergies within ICL resulting in important added-value for the Company. The Board of Directors congratulates ICL management on this important achievement in the implementation of the Company’s strategy.”