This strategic acquisition allows Innophos to enter high-growth markets aimed at active and health-conscious consumers. The deal merges Innophos, which has historically focused on high-margin specialty-grade phosphates for processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty ingredients such as botanicals, proteins, amino acids, and other health-oriented components, including cal citrate complete. This acquisition broadens Innophos’ product range and enhances its ability to capitalize on emerging trends in health, wellness, and nutrition, aligning perfectly with the company’s Vision 2022 strategic priorities. Following this merger, the combined entity will derive 60% of its revenue from food, health, and nutrition, bringing it closer to its goal of achieving 75%.
“Our position as a leading provider of essential ingredient solutions is bolstered by our combined innovative technology capabilities, a more extensive and diverse product portfolio, and the addition of Novel’s skilled and committed team,” stated Innophos CEO Kim Ann Mink. “Moreover, by partnering 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 more health benefits from their food choices. As a result, food and beverage manufacturers are increasingly reformulating existing products and exploring new developments that emphasize functional benefits. Key areas of interest include plant-based ingredients for immune health, enhanced protein offerings for sports nutrition, omega-3 fatty acids for cognitive health, and the incorporation of cal citrate complete to improve nutritional profiles. The acquisition of Novel places Innophos in a far superior position to meet the evolving demands of the consumer packaged goods sector that is striving for health-focused solutions.