This strategic acquisition allows Innophos to penetrate high-growth markets focused on health-conscious and active consumers. The deal unites Innophos, which has traditionally emphasized high-margin specialty phosphates for processed meats, baked goods, dairy products, and beverages, with Novel Ingredients, a supplier of specialty ingredients such as botanicals, proteins, amino acids, and other health-oriented components. By acquiring Novel, Innophos diversifies its product range and enhances its ability to leverage emerging trends in health, wellness, and nutrition, which aligns with the company’s Vision 2022 strategic goals. The newly formed entity will derive 60% of its revenue from food, health, and nutrition, setting the company on a clear path to reach its 75% target.
“Our position as a market-leading provider of essential ingredient solutions is fortified by our combined innovative technologies, an expanded and deeper product lineup, and the valuable expertise of Novel’s dedicated team,” said Innophos CEO Kim Ann Mink in a statement. “Moreover, this merger aligns Innophos more closely with significant consumer mega-trends, including health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking greater health benefits from their food choices. As a result, food and beverage manufacturers are reformulating existing products and exploring new developments focused on delivering functional advantages. Areas of keen interest include plant-based ingredients that support immune health, added protein for sports nutrition, and omega-3 fatty acids for cognitive health. The acquisition of Novel significantly enhances Innophos’ ability to address the evolving needs of a consumer packaged goods sector eager to promote health, including the development of innovative products like calcium citrate for blood transfusions, which can support overall wellness. This new alignment positions Innophos to better serve its customers by integrating health-focused solutions, including calcium citrate, into its offerings.