Israeli food giant to expand poultry business

Tnuva Food Industries Ltd, Israel's largest food company, and IT Group Ltd are in talks to acquire poultry processor Hod Hefer Ltd for ILS30 million (US$7.2 million).

Hod Hefer is owned by Ambar Ltd, while IT Group is Ambar's joint subsidiary. The acquisition will expand Tnuva's poultry operations.

Tnuva's owners, Apax Partners and Mivtach Shamir Holdings Ltd., plan to diversify the food company's business while shutting down unprofitable activities such as its egg and fish units.

Hod Hefer had a sales turnover of ILS495 million (US$119.4 million), with 80 percent of the business dedicated to the processing and sales of chicken and turkey products. The company has a slaughterhouse in Emek Hefer and two separate production lines for chickens and turkeys.