ICL accelerating biologicals portfolio growth in Brazil with strategic acquisition

ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, announced it has acquired Nitro 1000, a manufacturer, developer and provider of biologicals in Brazil for approximately $30 million. This acquisition marks another meaningful step into the biologicals market, while expanding ICL’s product offerings and positioning the company for further expansions into new and adjacent end-markets.

Nitro 1000 will immediately join the ICL product portfolio, and the company will begin selling to its existing customer base in Brazil. Nitro 1000’s products are mainly aimed at soybean, corn and sugar cane crops, and their application replaces or optimizes the use of fertilizers. This not only helps farmers increase profitability, it also offers a more sustainable solution.

″We’re excited to merge Nitro 1000’s core expertise in biologicals manufacturing with ICL’s extensive R&D capabilities and innovation engine and to further execute against our stated strategy of continuing to invest in agriculture – specifically in Brazil,″ said Elad Aharonson, president of ICL Growing Solutions. ″This acquisition allows us to leverage our global Growing Solutions business to develop new products and technology, while benefitting from our existing production capacity and go-to-market strategy. It will also enable us to continue to increase market share and leadership in Brazil specialty plant nutrition.″

Increasing interest in alternatives to agrochemicals has created higher demand for biologicals solutions, and the ag biologicals market is expected to grow at a 13.8% CAGR and reach $27.9 billion by 2028, according to MarketsandMarkets. Biologicals stimulate natural processes to enhance or benefit nutrient uptake, nutrient use efficiency, abiotic stress tolerance, and crop quality and yield.

In Brazil, ICL currently has more than 1,700 employees, and the country represented approximately 20% of sales in 2023. The agricultural business portfolio in Brazil includes enhanced efficiency and gradual release fertilizers, micronutrients, secondary macronutrients, foliar fertilizers, physiological action products, seed treatments, soil conditioners, adjuvants, and products for animal nutrition and industrial applications. The company expects the integration of Nitro 1000 to benefit significantly from its two recent successful acquisitions in Brazil, including the South American Plant Nutrition business of Compass Minerals and Fertiláqua, both in 2021.

″We founded Nitro 1000 in 2007 and made the necessary investments to develop our products and reach this point on our journey,″ said Iris Guindani, one of the founders of Nitro 1000, who will remain as head of operations. ″This next phase will allow us to leverage ICL's resources, including its robust R&D capabilities, to develop additional new products and target adjacent end-markets.″