Bioprinting-based industrial-scale cultivated meat production technologies developer Meat-Tech 3D has signed a letter of intent (LoI) to acquire 100% of an undisclosed company that develops cultured fat products.

The company specialises in developing a proprietary stem-cell-based technology to produce animal fats from cattle, chickens or geese, produced in a bioreactor without harming any animals.

As part of the deal, Meat-Tech will purchase all of the target company’s shares at approximately $17.5m. The payment will be a combination of cash and equity, while part of it will be milestone-based.

Meat-Tech CEO and CTO Sharon Fima said: “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.”

The acquisition is part of the company’s strategy to optimise its processes and diversify its product range by introducing cultured meat technologies to the market.

With this acquisition, Meat-Tech expects to expand its clean meat offerings, accelerate capability development and shorten times to market.

The deal is expected to enhance market operation by combining cultured fats with plant proteins, giving plant-based foods a more ‘real’ meat flavour and texture.

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

The completion of the deal is subject to a due diligence process and final agreement execution.