Chemicals manufacturer ICL acquires Lavie Bio activity from Evogene in the latest agreement related to agricultural biologics.
The agricultural biologics sector is witnessing a surge in consolidation, as major players join forces to pool resources and accelerate innovation. One recent deal that exemplifies this trend is the acquisition of the majority of subsidiary Lavie Bio's activity by Israel-based specialty chemicals manufacturer ICL from computational biology firm Evogene.
ICL, best known for manufacturing fertilizers and specialty minerals, has been expanding its activities around ag biologicals in recent years. This strategic move is evident in ICL's acquisition of Brazilian biologicals company Nitro 1000 in 2024 and the opening of its own research center for biologicals in Israel in 2025.
Lavie Bio, known for accelerating the discovery and development of agricultural biological products using computational biology, brings to ICL a rich microbial bank and technology platform. The integration of Lavie Bio's platform with ICL's R&D expertise in plant nutrition solutions strengthens their ability to deliver the next generation of biological solutions.
While Lavie Bio's existing partnerships with other major players such as Syngenta remain separate from the ICL acquisition, they potentially generate future revenues for Lavie Bio shareholders. The sector as a whole is poised for strong growth, with projections estimating the ag biologicals market to reach $19.6 billion by 2027, segmented into $12 billion biocontrols, $7.6 billion biostimulants, and $4 billion biofertilizers.
Panelists at the recent Salinas Biological Summit highlighted an increase in industry consolidation over the near term, driven by the need to pool resources, technologies, and commercial networks to accelerate innovation and market penetration. Consolidation allows companies like ICL to integrate computational biology platforms with broader R&D and field capabilities, improving the development and delivery of next-generation biological solutions.
The sector’s rapid growth is supported by broader trends such as regulatory shifts towards organic production, reduced chemical pesticide use, and pressures on arable land driving yield intensification via biological inputs. The consolidation trend is likely to accelerate innovation pipelines, increase market scale, and enhance adoption of sustainable, residue-free biological inputs globally, as companies leverage combined expertise and geographical reach.
In summary, the Evogene-Lavie Bio-ICL deal is a clear example of the ongoing consolidation in agricultural biologics, reflecting a broader industry movement discussed extensively at the Salinas Biological Summit that will shape the sector’s rapid growth and product innovation over the coming years.
ICL, with its expanding interest in finance and technology, could potentially diversify its portfolio further beyond agriculture, utilising Lavie Bio's technology platform to venture into the business of developing next-generation technology-driven solutions. The growth of the sports industry could present an opportunity for partnerships, as the demand for sustainable and residue-free biological inputs increases in sports turf management.
