Novel Ingredients supplies botanicals, proteins, amino acids and a range of other health ingredients for use in the food and nutrition spaces.
Speciality ingredients producer Innophos has agreed to acquire a US-based provider of dietary supplement ingredients for $125 million.
Novel Ingredients supplies botanicals, proteins, amino acids and a range of other health ingredients for use in the food and nutrition spaces. It turned over nearly $100 million last year, with compound annual growth of 19% between 2008 and 2016.
It is being sold by New York-based private equity firm GenNx360 Capital Partners.
Innophos president and chief executive officer Kim Ann Mink said: “The acquisition of Novel Ingredients is an exceptional opportunity for our company and a significant step forward in achieving our strategic goals. This transaction fully aligns with our Vision 2022 strategic priorities to grow our food, health and nutrition portfolio, increase our presence in attractive nutrition end-markets, and develop innovative solutions that better serve our customers.”
The deal includes Novel Ingredients’ strategic sourcing and 40,000-square-foot manufacturing facility in East Hanover, New Jersey, from where it supports production of more than 185 different ingredient solutions. It employs around 100 staff.
According to Innophos, the acquisition will deliver annual cost synergies of around $4 million – with further value from tax synergies and revenue synergies – and will turn its food, health and nutrition platform into a near $500-million-a-year operation.
The deal is expected to close in the third quarter of the year.
