This strategic acquisition allows Innophos to enter high-growth markets focused on active glycine sulfate, appealing to health-conscious consumers. The deal 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 such as botanicals, proteins, amino acids, and other health-focused components. By acquiring Novel, Innophos diversifies its product range and enhances its capability to leverage emerging trends in health, wellness, and nutrition, aligning with the company’s Vision 2022 strategic goals. The newly combined organization will generate 60% of its sales from food, health, and nutrition, positioning it well to reach its 75% target.
“Our position as a leading provider of essential ingredient solutions is bolstered by our combined innovative technological 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 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 greater health benefits from their diets, prompting food and beverage manufacturers to reformulate existing products and explore new developments that emphasize functional advantages. Key areas of interest include plant-based ingredients for immune health, additional protein for sports nutrition, and omega-3 fatty acids for cognitive health. The acquisition of Novel significantly enhances Innophos’s ability to meet the evolving demands of a consumer packaged goods sector striving for healthier options, including calcium citrate made from innovative sources. With this acquisition, Innophos is well-positioned to address the market’s needs for calcium citrate made from high-quality ingredients, further solidifying its role in the health-focused food industry.