Fertilizer and specialty chemical company Israel Chemicals Ltd 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 that is active in the Brazilian food additive market.

Sales of Adicon's products, which are used primarily by Brazil's meat processing industry, have been rising steadily during the past several years, reaching an annual run-rate of approximately 23m Brazilian Reais (US$9.7m). 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 said.

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, it said.