Innophos acquires NutraGenesis to boost its Food, Health and Nutrition portfolio

4ebc8d0a-69a4-49fc-806e-3210642ebef6articleimage.jpg

07 Nov 2017 --- Innophos Holdings has acquired NutraGenesis, a Vermont, US-based marketer of proprietary, branded and science-backed nutraceutical ingredients. This transaction builds on the momentum from its recent acquisition of Novel Ingredients and further advances Innophos’ Vision 2022 strategic priorities to grow its Food, Health and Nutrition portfolio, increase its presence in attractive nutrition end-markets and develop innovative solutions that better serve its customers.

Under the terms of the purchase agreement, Innophos has acquired all of the outstanding equity interests of NutraGenesis LLC, Icon Group LLC and Tradeworks Group, Inc., together referred to as NutraGenesis, for a total purchase price of US$28 million in cash.

Innophos has funded the acquisition with borrowings under its existing credit facility. The acquisition is expected to be accretive to Innophos’ earnings per share in the first year following the close of the transaction.

Aligned with mega-trends
“The addition of NutraGenesis' innovative, science-backed branded ingredients to our Food, Health and Nutrition portfolio more closely aligns Innophos with consumer mega-trends such as health and wellness, energized aging and clean labels,” says Kim Ann Mink, Ph.D., Chairman, President and Chief Executive Officer of Innophos Holdings, Inc.

“This transaction builds on the recent acquisition of Novel Ingredients and further strengthens our position as a leading specialty ingredient solutions provider to attractive end-markets,” Mink reports. “In addition, NutraGenesis’ asset-lite business model, complementary capabilities and established presence in high-growth nutraceutical markets make this a high-value addition for Innophos.”

Innophos gives the following reasons to establish why NutraGenesis is a science-based, proprietary, branded ingredients solutions provider:

  • Strong and established portfolio of branded ingredients supplying leading US and international developers of branded nutritional ingredients.
  • Highly complementary to recent Novel Ingredients acquisition and Innophos’ branded ingredients portfolio.
  • Proven track record of partnering with clients to transform ingredients into marketable brands backed by scientific data that supports product efficacy and performance claims.
  • Serving attractive high-growth end-markets – including stress reduction, weight management, joint health, brain health and metabolic wellness – that are driven by health and wellness consumer trends.

The following points are also given by Innophos to establish shareholder value:

  • All-cash transaction consideration of US$28 million financed by existing credit facility.
  • LTM sales of approximately US$12m, and accretive adjusted EBITDA margin of 22 percent.
  • Strong double-digit historical growth trajectory and outlook.
  • Asset-lite business model.
  • Accretive to earnings per share within the first year of combined operations.
  • Minimal impact on leverage.
  • Continued strong cash conversion cycle supports current dividend and strategic growth ambition.

“Bringing NutraGenesis into our branded ingredients portfolio provides an immediate opportunity to combine their branding and marketing expertise with our sourcing, manufacturing and technology capabilities to offer more differentiated ingredients solutions to our customers,” Mink comments.

“We are confident that the acquisition of NutraGenesis will strengthen our growth profile and create sustainable value for our customers and shareholders,” Mink adds. “We remain focused on building out our Food, Health and Nutrition platform, driving sustainable growth and advancing toward our Vision 2022 goals.”

To contact our editorial team please email us at editorial@cnsmedia.com

Innophos

Collapse

Innophos is a leading producer of specialty grade phosphate products for the Food, Pharmaceutical and Industrial market segments. Within these segments our products cover a broad range of applications including water, paper and metal treatment, agriculture, electronics, textiles, tablets, meat preservation and detergents. For example, specialty phosphates act as flavor enhancers in beverages, leavening agents in baked goods and cleaning agents in toothpaste.
 
They produce phosphates for a wide variety of areas within the food industry including: baking and leavening, beverages, confections, dairy & cheese, fermentation, meat, poultry, seafood and processed foods. They also produce phosphates that can help with the nutrition and fortification of food products as well as reduce sodium content.

Related Articles

Health & Nutrition News

Low-carb diets could shorten life by four years, warns Lancet study

17 Aug 2018 --- Following a low-carb diet could shorten life expectancy by four years, suggests new research published in The Lancet Public Health. The high levels of animal fats and proteins that often replace carbohydrates in typical low-carb diets appear to be associated with the higher risk of mortality. Eating more plant-based proteins and fats in place of carbohydrates was linked to lower mortality and even reversed the greater mortality risk. 

Health & Nutrition News

Weekly Roundup: US consumers rank clean water as top health desire, high protein diet reduces risk of diabetes for those with fatty liver

17 Aug 2018 --- The weekly roundup is NutritionInsight's collection of global nutrition stories from the past week. A Nestlé Waters commissioned survey found that clean water is the most important health factor to US consumers and a study found that increasing the amount of protein in the diet may reduce the risk of diabetes in people with Non-Alcoholic Fatty Liver Disease (NAFLD). Australia based Freedom Foods acquired protein product brand Crankt to strengthen its position in the sports nutrition market. The European Commission (EC) approved an application from DSM Europe to rename the carotenoid zeaxanthin in the novel food register. CBI and Campden BRI are teaming up for a Colombian product development workshop and, lastly, the Council for Responsible Nutrition (CRN) announced eleven new additions to its membership ranks.

Health & Nutrition News

ADM strengthens gut health strategy with US$235m Probiotics International acquisition

16 Aug 2018 --- Adding to a list of microbiome strategy investments, Archer Daniels Midland Company (ADM) has completed its acquisition of Probiotics International Limited (PIL) – known under its umbrella brand Protexin – in a US$235 million deal.

Health & Nutrition News

Coca-Cola invests in Bodyarmor, challenges Pepsi’s sports drink dominance

15 Aug 2018 --- Coca-Cola is to acquire a minority ownership stake in Bodyarmor – a fast-growing line of premium sports performance and hydration beverages – in a move that signifies Coca-Cola’s challenge to the strong market player Gatorade, which is owned by Pepsi. Financial terms of the agreement, including the size of the acquired stake, have not been disclosed.

Health & Nutrition News

Plant-based and dairy-free: Delivering on consumer taste and texture expectations

14 Aug 2018 --- The demand for dairy-free and plant-based products is growing. However, taste continues to reign supreme as consumers want dairy-free products but without budging on flavor or texture. Such demands have led to a range of R&D moves to overcome textural, stability and flavor challenges while aiming to keep ingredient lists as short as possible. NutritionInsight speaks to suppliers on how they are responding to the ever-expanding dairy-free trend, with a focus on plant-based protein and milk options. 

More Articles
URL : http://www.nutritioninsight.com:80/news/innophos-acquires-nutragenesis-to-boost-its-food-health-and-nutrition-portfolio.html