NESS ZIONA, ISRAEL – Cultivated meat production tech company, Meat-Tech 3D Ltd., signed a letter of intent to acquire 100% of a company that develops cultured fat products. The target company’s process is a unique proprietary stem-cell-based technology that uses a bioreactor without harming any animals. Meat-Tech plans to expand its clean meat offerings with the new company’s technology, accelerate its capability development and get to market faster.

Meat-Tech will purchase all the target company’s shares for approximately $17.5 million in a combination of cash and equity, part of which will be milestone-based. The completion of the deal is subject to a due diligence process and execution of a final agreement.

“We expect the cultured fat technology to offer significant R&D synergies and help us realize our vision of development and production of a variety of cell-based foods using more sustainable production technologies,” said Sharon Fima, chief executive and chief technology officer of Meat-Tech.

“We hope to collaborate with new team members very soon, cultured fats are a promising candidate to be amongst the first cell-based products to be launched at scale,” added Steve H. Lavin, chairman of the board of directors of Meat-Tech.

Also, Meat-Tech said it believes the acquisition will open additional market opportunities through the ability to combine cultured animal fats with plant-based meats to create a more ‘real’ flavor and texture. Meat-Tech added that consumers expect more hybrid products incorporating pant and animal components and new markets like those currently offering plant-based alternative meats.

Meat Tech’s combination of internal R&D and acquisitions is part of its growth strategy to develop multiple technologies to lease to major food producers worldwide. The strategy also intends to lessen the use of natural resources in overall food production, improve animal welfare and meet a growing demand for sustainable meat production.