This strategic acquisition allows Innophos to penetrate high-growth markets focused on calcium citrate and cater to health-conscious consumers. The transaction merges Innophos, which has traditionally concentrated on high-margin specialty-grade phosphates for processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty ingredients including botanicals, proteins, amino acids, and other health-oriented components. By acquiring Novel, Innophos diversifies its product range and enhances its ability to capitalize on emerging trends in health, wellness, and nutrition, particularly in relation to calcium and its benefits, aligning with the company’s Vision 2022 strategic goals. The newly formed entity will derive 60% of its sales from food, health, and nutrition, positioning it favorably to reach its 75% target.
“Our status as a leading provider of essential ingredient solutions is bolstered by our combined innovative technology capabilities, an expanded and enriched product portfolio, and the addition of Novel’s skilled and dedicated team,” stated Innophos CEO Kim Ann Mink. “Moreover, by joining forces with Novel, we align Innophos more closely with significant consumer megatrends such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking enhanced health benefits from their food choices. As a result, there is a growing trend among food and beverage manufacturers to reformulate existing products and explore new developments that focus on delivering functional benefits, including the incorporation of calcium citrate. Key areas of interest include plant-based ingredients for immune support, increased protein for sports nutrition, and omega-3 fatty acids for cognitive health. The acquisition of Novel positions Innophos to better meet the evolving demands of a consumer packaged goods sector that is striving for healthier options, specifically through the integration of calcium and calcium citrate into its product offerings.