Trade Resources Company News Innophos to Buy Dietary Supplement Ingredient Solutions Provider Novel Ingredients

Innophos to Buy Dietary Supplement Ingredient Solutions Provider Novel Ingredients

Private equity firm GenNx360 Capital Partners has signed an agreement to sell its portfolio company Novel Ingredients to specialty ingredients provider Innophos Holdings.

Novel Ingredients, which was acquired by GenNx360 in March 2014, is headquartered in New Jersey. It supplies botanical and nutraceutical raw materials for the dietary supplement, sports nutrition, food and beverage and pet care industries. 

The company serves markets driven by health and wellness consumer trends with registered growth in the 4% to 8% range.

The company has 100 customer-focused employees who deliver solutions to more than 200 customers.

As per the agreement, all the outstanding shares of Novel Ingredients will be acquired by Innophos for $125m.

The transaction, which is expected to close in the third quarter of 2017, is subject to customary closing conditions which include review under the Hart Scott Rodino Antitrust Improvements Act.

Innophos Holdings president and CEO Kim Ann Mink said: "Bringing Novel Ingredients and Innophos together will create a Food, Health and Nutrition platform of nearly $0.5 billion in revenue representing 60% of our total combined Company.

"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.”

Novel Ingredients CEO Rick Antonoff said: "We believe that joining the Innophos team will enable Novel Ingredients to deliver enhanced value to our existing customers, and will present exciting opportunities to expand our business into new market adjacencies.”

The acquisition is expected to generate annual cost synergies of $4mand revenue synergies are estimated from combined product technology and customer relationships.

Contribute Copyright Policy