This strategic acquisition allows Innophos to enter high-growth markets focused on active and health-conscious consumers. The deal merges Innophos, known for its high-margin specialty-grade phosphates used in processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty ingredients such as botanicals, proteins, amino acids, and other health-promoting components. By acquiring Novel, Innophos diversifies its product offerings, positioning the company to leverage emerging trends in health, wellness, and nutrition, which align with its Vision 2022 strategic goals. Following the merger, 60% of the combined entity’s sales will come from food, health, and nutrition, setting the company on track to meet its 75% target.
“Our market-leading status as a provider of essential ingredient solutions is bolstered by our enhanced innovative technology capabilities, a more extensive and diverse product portfolio, and the addition of Novel’s skilled and committed workforce,” stated Innophos CEO Kim Ann Mink. “Moreover, our integration with Novel aligns Innophos more closely with significant consumer megatrends such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking health benefits from their diets, prompting food and beverage manufacturers to reformulate existing products and develop new ones that offer functional advantages. There is a notable interest in areas such as plant-based ingredients for immune health, added protein for sports nutrition, and omega-3 fatty acids for cognitive health. The acquisition of Novel positions Innophos to better meet the evolving demands of a consumer packaged goods (CPG) sector aiming for healthier options, including the introduction of products like calcium citrate 500 mg tablets to support nutritional needs. With this acquisition, Innophos is now well-equipped to address these growing consumer trends and health-focused innovations.