Israel Chemicals Ltd. (ICL) has announced that ICL Performance Products, one of its four operating segments, 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. The deal is being carried out through ICL Performance Products' business unit Food, a producer and distributor of food additives, which plans to merge Adicon with another of its companies active in the Brazilian food additive market.
Established in 1965, Adicon is recognized as a quality supplier and operates from state-of-the-art facilities located in Sao Paolo. Sales of Adicon's products, primarily used by Brazil's meat processing industry, have been rising steadily during the past several years, reaching an annual run-rate of approximately 23 million Brazilian Real (approximately $9.5 million). The increase reflects the rise in worldwide consumption of processed meat products, which works to the benefit of Brazil's meat industry, the third largest meat exporter in the world.
The company believes the addition of Adicon's complementary products and activities to those of ICL Performance Products' business unit Food, whose food additives are downstream products derived from the ICL Group's specialty phosphates, will assist ICL Performance Products in its efforts to expand operations in Brazil and other parts of Latin America.