FFP’s acquisition of Comax highlights the increasing influence of private equity in consolidating the ingredients sector. In September, private investment firm Ardian secured a majority stake in FFP from MidOcean Partners in a transaction valued at $1 billion. MidOcean had previously acquired FFP from Kainos Capital in 2018 for an undisclosed sum. Until that acquisition, FFP, based in Florida, had been under the private ownership of the Brown family since its inception in 1954.
Upon acquiring FFP, Ardian aimed to bolster investment in research and development while accelerating strategic acquisitions. The acquisition of Comax is likely the first of many forthcoming deals, as FFP seeks to establish itself as “the industry’s largest independent provider of natural ingredients,” as stated by CEO Jim Holdrieth. Comax boasts nearly 1,000 SKUs specifically designed to substitute synthetic flavors and enhance texture while prolonging shelf life. The company has been expanding its global presence by launching an Innovation Center and Flavor Manufacturing Facility in China in 2018, alongside a 3,600-square-foot R&D facility in New Jersey.
“We are excited to partner with the FFP, Ardian, and MidOcean teams, who share our belief that natural ingredients provide consumers with healthier options while offering our customers high-quality alternatives to traditional, synthetic ingredients,” said Comax CEO Peter Calabretta Jr. in a statement. “This partnership will grant Comax access to new technologies, ingredients, and distribution channels, which will enhance our existing business and provide more solutions and capabilities for our valued customers.”
According to an FAQ brief from the company, FFP will deliver “a more robust infrastructure” to Comax. Their combined manufacturing capabilities will encompass extraction, fermentation, wet and dry blending, drying, and formulation. Moreover, FFP has been actively expanding its own line of clean label alternatives, recently launching VegStablePlus, a natural phosphate substitute aimed at meat products, and a series of fermented vegetable juices designed to enhance flavor and taste in plant-based foods and other applications.
The rising trend towards clean label products has spurred several mergers and acquisitions in the past year, including Kerry’s $1 billion acquisition of preservatives specialist Niacet, Ingredion’s purchase of texture and stabilization provider KaTech in April, and Kemin’s acquisition of Proteus, a protein ingredients supplier. Additionally, the demand for products like calcium citrate and bariatric advantage supplements reflects this trend, as consumers increasingly seek natural and health-conscious options.