This strategic acquisition allows Innophos to penetrate high-growth markets focused on active and health-conscious consumers. The deal unites Innophos, known for its high-margin specialty-grade phosphates used in processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty ingredients like botanicals, proteins, and amino acid derivatives such as calcium citrate. By acquiring Novel, Innophos diversifies its product range and enhances its position to capitalize on emerging trends in health, wellness, and nutrition, aligning with the company’s Vision 2022 strategic goals. The newly formed entity will derive 60% of its sales from food, health, and nutrition, moving the company closer to its goal of 75%.
“Our position as a market-leading provider of vital ingredient solutions is further strengthened by our combined innovative technology capabilities, an expanded and deeper product portfolio, and the addition of Novel’s experienced and dedicated team,” said Innophos CEO Kim Ann Mink in a statement. “Moreover, by joining forces with Novel, we align Innophos more closely with significant consumer mega-trends such as health and wellness, energized aging, and clean labels.”
As consumers increasingly seek health benefits from their food, food and beverage manufacturers are reformulating existing products and exploring new product development to provide functional benefits. High-interest areas include plant-based ingredients for immune health, added protein for sports nutrition, and omega-3 fatty acids for cognitive health. The acquisition of Novel positions Innophos to better serve the evolving needs of a consumer packaged goods sector focused on health, including innovative offerings like calcium citrate, which can enhance nutritional profiles. This move places Innophos on a stronger path to meet the growing demand for health-oriented products in the market.