CHS acquires soy protein firm Solbar

US-based energy, grains and foods company CHS has completed the $133m acquisition of Solbar, an Israel-based producer of specialty soy proteins and soy isoflavones, which forms part of its strategy to expand its soy product manufacturing business.

CHS executive vice president and CEO Ag Business Mark Palmquist said: "The Solbar acquisition deepens our presence in the value-added soy protein market segment, and fits into CHS aspirations for business growth in food and food ingredient markets and global commodities expansion."

CHS, which has soybean processing, refining, and soy product manufacturing operations in Minnesota, Iowa, and Kansas, will manage operations of Solbar through CHS Oilseed Processing in the Ag Business segment.

Solbar chief executive officer Shaul Shelach says he feels certain that CHS is well-positioned to take Solbar products and operations to ‘the next level’.

"Both Solbar and CHS have a strong customer focus, a commitment to quality, interest in building market share and soy product manufacturing expertise," Shelach added.

According to CHS, soy isolates, concentrates and isoflavones are the future of the soy protein industry as they offer a nutritious, less costly source of protein for human health and food markets.

Solbar, based in Ashdod, Israel, produces soy protein ingredients for manufacturers in the meat, vegetarian, beverage, bars and crisps, confectionery, bakery, and pharmaceutical segments, and it has manufacturing and logistics facilities in Ashdod and Ashkelon, Israel; Nebraska, US; and Ningbo, China.

CHS has gradually been expanding its soybean operations and has already acquired soybean plant operations from US-based DeBruce Grain last year.