Innophos and Novel Ingredients combine to create $0.5bn FHN platform
Speciality ingredient solutions provider Innophos has completed the acquisition of US-based Novel Ingredients.
According to the agreement, which was announced on 1 August, Innophos has purchased all outstanding shares of Novel Ingredients for $125m (enterprise value) in cash.
The acquisition was funded by loans through its existing credit facility.
Innophos Holdings chairman president and chief executive officer Kim Ann Mink said: "Today is a significant day in Innophos' history. We are delighted to welcome Novel into the Innophos family.
“This strategic combination creates a $0.5bn Food, Health and Nutrition platform that represents 60% of revenue for the combined company."
Novel Ingredients acquisition is reported to be in line with Innophos Vision 2022 strategy, which focuses on growing its Food, Health and Nutrition (FHN) portfolio, as well as expanding its footprint across high-growth nutrition end-markets and develop new ingredient solutions for its customers.
Mink added: “Our position as a market-leading provider of vital ingredient solutions to high-growth FHN market segments is strengthened through our combined innovative technology capabilities; a broader and deeper product portfolio; and the addition of Novel's experienced and dedicated people.
“In addition, by coming together with Novel, we more closely align Innophos with important consumer megatrends such as health and wellness, energised ageing and clean labels.”
Headquartered in Cranbury, New Jersey, Innophos offers its ingredient solutions to food, health, nutrition and industrial markets. It also has manufacturing operations across the US, in Canada, Mexico and China.