1. Business
  2. Funding and finance
September 11, 2020

Meat-Tech acquisition brings lab-grown meat closer to reality

By Lucy Ingham

Meat-Tech 3D, an Israeli company developing lab-grown, bioprinted meat, has announced that it is acquiring an unnamed company to aid its goal of producing cruelty-free meat for mass consumption.

The company, which Meat-Tech describes as “a leading developer of cultured fat products” has developed a stem-cell-based technology that enables it to lab-grow animal fats without harming animals. The method, which is proprietary to the company, can produce fats from a wide range of animals, including cattle, chickens and geese.

The deal, which is subject to the usual due diligence processes, will see Meat-Tech purchase all of the company’s shares for $17.5m.

It will bring key capabilities to Meat-Tech, which is currently developing technologies to manufacture lab-grown meats as an alternative to traditional farming practices using 3D bioprinting.

Acquisition could make Meat-Tech a key player in the nascent lab-grown meat market

Promising an end to animal cruelty and improved environmental credentials over traditional farming, lab-grown meats are expected to form a key part of the future food supply. However, the production of fats, which provide much of the flavour of meats, has proved to be a key stumbling block.

If the company Meat-Tech is acquiring is able to solve this, it could make Meat-Tech a powerful player in the nascent lab-grown meat market.

“We expect the cultured fat technology to offer significant R&D synergies and help us realise 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.

The company plans to develop initial products for commercialisation by combining cultured fats with plant proteins to produce hybrid products that offer a more authentic meat flavour than current products. And with the plant-based meat market expected to be worth $27.9bn by 2025 – a 15% rise since 2019, according to Markets and Markets – this could prove to be a valuable offering in the space.

“Cultured fats are a promising candidate to be amongst the first cell-based products to be launched at scale,” said Steve H Lavin, chairman of the Board of Directors of Meat-Tech.

Read more: Lab-grown meat acceptance is possible, but only if marketed right


Verdict deals analysis methodology

This analysis considers only announced and completed cross border deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.

Topics in this article: ,