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ICL Strengthens Food Ingredients Platform With Bartek Acquisition

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Key Takeaways

  • ICL agreed to buy Bartek Ingredients in a two-stage deal, targeting a Q1 2026 first-phase closure.
  • Bartek generates $65 million annually and supplies 40 countries with malic and fumaric acid.
  • Bartek is building a new facility due online in 2026, expected to boost capacity materially.

ICL Group Ltd (ICL - Free Report)  has unveiled a strategic initiative to further expand its footprint in the global food ingredients space by entering into a definitive agreement to acquire Bartek Ingredients, a Canada-based producer specializing in food-grade acidulants, including malic and fumaric acid, widely used in food, beverage, confectionery and bakery applications.  

The transaction is structured in two stages, with an initial cash investment of about $90 million to acquire approximately 50% ownership, with closing targeted for the first quarter of 2026, underscoring ICL’s focus on scaling its specialty food solutions and value-added ingredient portfolio.  

Bartek, which generates around $65 million in annual revenues and supplies customers in more than 40 countries, is also in the process of constructing a new manufacturing facility expected to come online in 2026, enhancing future capacity and growth potential. Once completed, the new facility is expected to materially enhance capacity and output, enabling greater exposure to the global functional food ingredients market, which is projected to surpass $45 billion in sales by 2030. 

The second phase of the deal, which would see ICL acquire the remaining stake, is subject to achieving predefined operational and integration milestones, as well as standard regulatory approvals. Management views the acquisition as a strong strategic fit with ICL’s existing food solutions platform, supporting broader market reach and reinforcing long-term growth prospects in the global food ingredients market. 

Shares of ICL are down 23.5% in the past six months compared with the industry’s 11.9% decline. 

Zacks Investment ResearchImage Source: Zacks Investment Research

ICL Zacks Rank & Key Picks

ICL carries a Zacks Rank of #3 (Hold). 

Some better-ranked stocks in the Basic Materials space are Commercial Metals Company (CMC - Free Report) , AngloGold Ashanti Plc. (AU - Free Report) , Ternium S.A. (TX - Free Report) . CMC and AU sport a Zacks Rank #1 (Strong Buy), while TX carries a Zacks Rank of #2 (Buy). You can see the complete list of today’s Zacks #1 Rank here.

The Zacks Consensus Estimate for CMC’s current fiscal-year earnings is pegged at $7.05 per share, indicating a 125.2% year-over-year increase. Shares of CMC have jumped 40.8% over the past six months. 

The Zacks Consensus Estimate for AU’s current-year earnings is pegged at $5.51 per share, indicating a 149.32%% year-over-year increase. Shares of AU have surged 94% over the past six months. 

The Zacks Consensus Estimate for TX’s current fiscal-year earnings stands at $2.96 per share, reflecting a 84% year-over-year increase. Shares of TX have soared 27.7% over the past six months. 


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