Vermont Business MagazineInnophos Holdings, Inc(NASDAQ: IPHS) announced today that it has acquired NutraGenesis, a Brattleboro, Vermont-based marketer of proprietary, branded and science-backed nutraceutical ingredients.Innophos is based in Crannberry, NJ. It's been in an acquisition mode and acquiredNovel Ingredients for a total purchase price of$125 million in August.Novel is aNew Jersey-based provider of dietary supplement ingredient solutions. According to its Web site, NutraGenesis offers a diverse portfolio of patented, branded nutraceutical ingredients for dietary supplements. NutraGenesis will remain in Brattleboro.
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$28 millionin 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.
"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," saidKim 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. 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."
In a statement to VBM in response to a question about local staffing, Innophos said: “Joining together NutraGenesis with Innophos presents several exciting growth opportunities. This includes the potential to expand further into market adjacencies like the functional food space, accelerate innovation and leverage Innophos’ strong balance sheet to make investments to support NutraGenesis’ branded product portfolio’s growth trajectory.
"We highly value the assets that we are acquiring, which includes a highly talented NutraGenesis team. At this time, there are no planned relocations of NutraGenesis employees.”
NutraGenesis, A Science-Based, Proprietary, Branded Ingredients Solutions Provider
- Strong and established portfolio of branded ingredients supplying leading U.S. 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
Acquisition Delivers Strong Shareholder Value
- All-cash transaction consideration of$28 millionfinanced by existing credit facility
- LTM sales of~$12m, and accretive adjusted EBITDA margin of 22%
- 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 commented.
"We are confident that the acquisition of NutraGenesis will strengthen our growth profile and create sustainable value for our customers and shareholders," Mink said. "We remain focused on building out our Food, Health and Nutrition platform, driving sustainable growth and advancing toward our Vision 2022 goals."
Lazard acted as financial advisor to Innophos on the transaction and Baker Botts LLP served as Innophos' legal advisor.
Alantra acted as financial advisor to NutraGenesis and Downs Rachlin Martin PLLC acted as NutraGenesis' legal advisor.
Innophos is a leading international producer of specialty ingredient solutions that deliver far-reaching, versatile benefits for the food, health, nutrition and industrial markets. We leverage our expertise in the science and technology of blending and formulating phosphate, mineral and botanical based ingredients to help our customers offer products that are tasty, healthy, nutritious and economical. Headquartered inCranbury, New Jersey, Innophos has manufacturing operations acrossthe United States, inCanada,MexicoandChina. For more information, please visitwww.innophos.com. 'IPHS-G'
NutraGenesis’ proprietary ingredients possess substantiated structure/function claims that address today’s leading health areas including:Immune Support, Stress Management, Healthy Weight Management, Anti-Aging/Beauty from Within, Enhanced Energy, Cognitive Function, Metabolic Wellness, and Cardiovascular Health.
CRANBURY, N.J.,Nov. 6, 2017/PRNewswire/ --Innophos Holdings, Inc