ICL Food Specialties, a business unit of essential food products manufacturer ICL, has inked a share purchase agreement to acquire Prolactal, and its subsidiary, Rovita, collectively known as Prolactal.

The transaction is expected to be completed during the first quarter of 2015, subject to regulatory approvals by Austria and Germany.

Prolactal produces and sells a wide range of functional dairy proteins that are used in the beverage, dairy and meat industries to stabilize and improve the nutrition of beverages and foods processed under a variety of conditions.

It employs around 200 people and operates two plants utilizing advanced production process technology capable of complete fractionation of milk.

Prolactal generated around €100m in annual revenues during the year 2014.

The combined capabilities of ICL’s existing phosphate and Prolactal’s protein will help ICL Food Specialties to offer innovative, value-added ingredient systems that outperform other available solutions. It also provides new market opportunities.

The combined operation will also enhance ICL’s ability to serve its existing clients by providing broader selection of texture and stability ingredients.

ICL anticipates that the acquisition will provide considerable sales and marketing synergies in several regions globally.