ICL Bets Big on Food Ingredients with Bartek Acquisition

TEL AVIV, Israel & ST. LOUIS – December 18, 2025 – Global specialty minerals company ICL Group has announced a definitive agreement to acquire Bartek Ingredients, the world's largest producer of food-grade malic and fumaric acid. The move represents a significant strategic pivot for ICL, deepening its footprint in the high-growth specialty food solutions market and positioning the company to capitalize on surging consumer demand for functional and clean-label products.

The acquisition will be executed in two phases, commencing with a cash investment of approximately $90 million for a 50% stake in Bartek. This initial phase is slated to close in the first quarter of 2026, subject to customary regulatory approvals. The deal implies a total valuation of approximately $180 million for the Ontario, Canada-based ingredients specialist, a figure that reflects its market leadership and growth potential.

A Strategic Pivot into Specialty Foods

This acquisition is a cornerstone of ICL's recently refined corporate strategy, which prioritizes expansion in its specialty crop nutrition and specialty food solutions divisions. By bringing Bartek into its fold, ICL gains immediate leadership in the acidulants category, a critical segment of the broader functional food ingredients market, which is projected to surpass $45 billion in sales by 2030.

"We are excited to expand our portfolio deeper into specialty food solutions, with the acquisition of Bartek Ingredients – a global market leader in functional food ingredients," said Elad Aharonson, president and CEO of ICL, in a statement. "This strategic acquisition helps position us for further growth, as we leverage our existing global food presence to expand into other food ingredient segments."

The move is seen by analysts as a calculated step to diversify ICL's portfolio beyond its traditional mineral and agricultural businesses into higher-margin, value-added products. The functional food market is being propelled by powerful consumer trends, including a growing focus on health and wellness, a preference for natural ingredients, and the rise of plant-based diets. Bartek's products are integral to meeting these demands.

ICL plans to leverage its global scale, extensive R&D capabilities, and decades of technical expertise to accelerate Bartek’s growth. The synergy is expected to unlock new opportunities and enhance value for customers in over 40 countries where Bartek currently distributes its products.

The Science of Flavor and Preservation

At the heart of the acquisition are malic and fumaric acid, two organic acidulants that play a crucial role in modern food and beverage production. These ingredients are not merely additives; they are functional components that enhance flavor, improve stability, and extend shelf life.

Malic acid, known for providing a smooth and persistent sour taste similar to that found in apples, is widely used in beverages, candies, and desserts to balance sweetness and create complex flavor profiles. Fumaric acid is a highly efficient acidulant used in powdered drink mixes, baked goods, and jellies, where it helps control pH, acts as a preservative, and prevents spoilage.

Bartek's leadership in this niche is built on its ability to produce high-purity, food-grade versions of these acids that meet the stringent requirements of global food manufacturers. The demand for these ingredients is rising as food companies seek natural-tasting and clean-label alternatives to artificial preservatives and flavor enhancers. The acids' ability to improve the quality and safety of products aligns perfectly with the market's trajectory toward healthier and more transparent food options.

A North American Production Powerhouse

A key strategic asset for ICL in this deal is Bartek's unique manufacturing position in North America. The company operates the continent's only vertically integrated production facilities for maleic anhydride—the raw material—and food-grade malic and fumaric acid. This integration provides a significant competitive advantage, ensuring a stable supply chain, cost control, and consistent product quality from start to finish.

This North American stronghold is set to become even more formidable. Bartek is currently in the process of constructing a new, state-of-the-art production facility, which is expected to come online in 2026. This expansion is projected to significantly increase Bartek's production capacity and volumes, positioning the combined entity to capture an even larger share of the growing global demand.

This investment in domestic manufacturing capacity is particularly relevant amid ongoing global supply chain disruptions, offering customers a resilient and reliable regional source for critical ingredients. For ICL, it provides a powerful manufacturing hub to serve the lucrative North American market and beyond.

Deal Structure and Market Outlook

The financial terms of the deal reflect Bartek's strong market position. With current annual revenues of approximately $65 million, the implied $180 million valuation translates to a revenue multiple of roughly 2.77x. While robust, this multiple is considered reasonable within the specialty ingredients sector, especially for a company with market leadership, proprietary integrated manufacturing, and clear expansion plans in a high-growth industry.

The two-phase structure allows ICL to begin integration and ensure performance milestones are met before committing to the acquisition of the remaining shares. However, the transaction's completion is contingent on clearing regulatory hurdles. Given Bartek's standing as a market leader, the deal will likely face close review from competition authorities in Canada and the United States to assess its impact on market concentration and pricing.

Looking ahead, the combination of Bartek’s specialized expertise and ICL’s global resources is poised to create a formidable force in the food ingredients space. Andrew Ross, CEO of Bartek Ingredients, expressed confidence in the partnership. "We expect to maximize our potential and capture an even larger share of the growing global functional food ingredients market, as we leverage ICL’s global scale, technical expertise – including R&D capabilities – and decades of experience, to provide additional value to customers," Ross stated. As the integration process begins, the industry will be watching closely to see how this new powerhouse innovates within the rapidly evolving landscape of global food science.