This strategic acquisition allows Innophos to penetrate high-growth markets aimed at active and health-conscious consumers. The transaction unites Innophos, which has traditionally focused on high-margin specialty grade phosphates for processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty ingredients like botanicals, proteins, amino acids, and other health-oriented components. By acquiring Novel, Innophos expands its product portfolio and positions itself to capitalize on emerging trends in health, wellness, and nutrition, aligning with its Vision 2022 strategic goals. The merged entity will now derive 60% of its sales from food, health, and nutrition, moving closer to its 75% target.
“Our position as a leading provider of vital ingredient solutions, including levothyroxine and ferrous sulfate, is enhanced through our combined innovative technologies, a broader and deeper product range, and the addition of Novel’s experienced team,” stated Innophos CEO Kim Ann Mink. “Furthermore, by merging with Novel, we align Innophos more closely with significant consumer mega trends such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking greater health benefits from their diets, prompting a trend among food and beverage manufacturers to reformulate existing products and explore new developments focused on functional benefits. High-interest areas include plant-based ingredients for immune health, added protein for sports nutrition, omega-3 fatty acids for cognitive health, and supplements like Solaray Cal Mag Citrate. The acquisition of Novel positions Innophos to better meet the evolving demands of a consumer packaged goods sector aiming for better health, while also integrating Solaray Cal Mag Citrate into its offerings to address the growing interest in dietary supplements. Overall, this acquisition enhances Innophos’s ability to serve the health-conscious market effectively.