Israel Chemicals Ltd. (TASE: ICL) has signed an agreement to acquire Mexican functional food ingredients and specialty chemicals manufacturer, Cosmocel Quimica SA de CV. Israel Chemicals did not disclose the size of the deal, but said that it expects to close it within weeks.
This is Israel Chemicals' third acquisition this year, after acquiring Spanish fertilizer company Antonio Fuentes Mendez SA in April, and completing its acquisition of US company Scotts' Global Professional business in March. Israel Chemicals is also investing heavily to expand its Spanish potash unit Iberpotash SA.
Cosmocel Quimica is a subsidiary of Monterey-based Cosmocel SA, a private manufacturer of specialty industrial chemical products, as well as food additives, specialty nutrients, and coadjuvants for agricultural markets. The company was founded in 1960.
ICL Performance Products LP president and CEO Charles Weidhas said, "Through this acquisition, ICL Performance Products is expanding our reach in the food, beverage and specialty chemical markets. We are broadening both our product portfolio and our geographical customer base. This will allow us to expand our ability to meet our customer's needs, especially in the bakery, dairy and beverage markets. In addition, it reinforces our position as a global leader in the phosphates and food ingredient industry."
ICL Performance Products will acquire Cosmocel Quimica's state-of-the-art manufacturing facility in Monterrey, Mexico and its extensive sales and distribution network in Mexico, Central and South America. Cosmocel Quimica will operate as ICL Fosfatos y Aditivos Mexico.
Israel Chemicals' share price fell 1.2% by midday to NIS 51.39, giving a market cap of NIS 66 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2011
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