Solbar plans US growth with acquisition

Soy specialist Solbar USA has snapped up Nebraska-based Green Planet Farms for $7.75m as part of an effort to grow its sales and soy processing capabilities in its target market.

Solbar has its headquarters in Ashdod, Israel but the US is a significant market for its store of identity-preserved soy protein ingredients. In 2008 it announced that Greg Horn had joined the business as the new president of the Solbar USA subsidiary.

The acquisition of Green Planet Farms is the next stage in its plan; the acquisition includes Green Planet’s bang up-to-date processing plant, which was only completed in 2008 to produce soy protein isolate using an eco-friendly process that separates protein from oil without the use of chemicals.

President and CEO Saul Shelach revealed that expansion of the plan could a possibility in the future.

“Solbar will… examine plans to expand the factory, if necessary, understanding that this purchase will significantly increase our sales scopes in the US, our profitability and our financial robustness,” he said.

Solbar has been a publicly listed company on the Tel Aviv stock exchange since 2004. Its US base is in St Paul, Minnesota.

He said the acquisition is expected to lead to an increase in sales “worth tens of millions of dollars in the next few years”.

“It will help the company leverage our leading technology and our innovative products for beverages and extruded protein snacks towards the large clients in the USA market. The company keeps strengthening its competitiveness in the main target markets, USA and Asia, and enjoys growing demand for advanced soy products from the health and nutrition market as well as from the meat industry.”

Solbar publishes its financial reports in Hebrew only. Its global revenues in the year ended June 2010 were NIS 333,266,000 (c $90,306,99), however and operating income NIS16,112,000.