ISRAEL – Meat-Tech 3D Ltd, a developer of industrial-scale cultivated meat production technologies based on advanced 3D bioprinting, has signed a letter of intent to acquire 100% of a leading developer of cultured fat products for US$17.5 million.
The target company developed a unique, proprietary stem-cell-based technology to produce animal fats, such as those from cattle, chickens or geese, produced in a bioreactor without harming any animals.
The Israel based company expects this acquisition will allow it to expand its clean meat offerings, accelerate capability development, and shorten times to market.
Subject to the completion of a due diligence process and execution of a final agreement, Meat-Tech will purchase all of the target company’s shares in a combination of cash and equity, part of which will be milestone-based.
“We expect the cultured fat technology to offer significant R&D synergies and help us realize our vision of development and production of a variety of cell-based foods using more sustainable production technologies. We hope to collaborate with new team members very soon,” said Sharon Fima, CEO and CTO of Meat-Tech.
“Cultured fats are a promising candidate to be amongst the first cell-based products to be launched at scale,” added Steve H. Lavin, Chairman of the Board of Directors of Meat-Tech.
This acquisition will reportedly open additional market opportunities for the company, as it will allow Meat-Tech 3D to combine cultured fats with plant proteins, giving plant-based foods a more ‘real’ meat flavour and texture.
The company also claimed that purchase would allow it to expand its ‘clean meat’ portfolio, accelerate capability development and shorten times to market.
According to the company, there is growing consumer demand for “hybrid” products which incorporate both plant components and animal cell-based ingredients.
“Cultured fats are a promising candidate to be amongst the first cell-based products to be launched at scale.”Steve H. Lavin – Chairman of the Board of Directors of Meat-Tech.
The company anticipates that this segment will develop into a significant market, akin to the current plant-based alternative meat products.
This acquisition is part of Meat-Tech’s growth strategy of optimizing its processes and diversifying its product range to introduce cultured meat technologies to the market as quickly as possible.
Through a combination of internal development and acquisitions, Meat-Tech is developing multiple cutting-edge technologies intended to be leased to major food producers globally.
Meat-Tech intends for its technologies to be utilized by value-added food producers to make advanced cultivated meat and related products.
This in tandem to minimizing the use of natural resources, improving animal welfare and meeting the growing demand for meat sustainably. The acquisition is subject to due diligence and the execution of a definitive agreement.
According to the current analysis of Reports and Data, the global Cultured Meat market is estimated to be valued at US$ 15.29 Million by year 2021, and reach a value of USD 19.0 Million by year 2026, at an estimated CAGR of 4.4%.
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