ICL To Buy Prolactal

(RTTNews) - Israel Chemicals Ltd or ICL (ICL), a maker of products that fulfill essential needs in the agriculture, processed food and engineered materials markets, on Tuesday said that its ICL Food Specialties unit has entered into a share purchase agreement to buy Prolactal GmbH, and its subsidiary, Rovita GmbH. The financial terms of the deal were not disclosed.

Prolactal, based in Hartberg, Austria, and Engelsberg, Germany, is a European producer of dairy proteins and other ingredients for the food and beverage industries.

ICL expects the deal to be EPS accretive for the company from the first year of consolidation with an EV/expected EBITDA ratio of 9 for 2015.

The deal 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 2014 revenues of about €100 million, produces a range of functional dairy proteins used in the beverage, dairy and meat industries.

ICL expects the deal to contribute substantial sales and marketing synergies in several regions worldwide where there is growing demand for texture and stability ingredients.

Prolactal, which employees about 200 people, operates two plants utilizing state-of-the-art production process technology capable of complete fractionation of milk.

Prolactal's CEO Johann Tanzer has agreed to remain at Prolactal following its sale to ICL and he will join ICL Food Specialties' senior management.