CRANBURY, N.J., Nov. 2, 2011 -- Innophos Holdings, Inc. (NASDAQ: IPHS), the leading North American producer of specialty phosphate products for the food, beverage, pharmaceutical, oral care and industrial end markets, today announced that it had entered into a binding agreement and completed the acquisition of Kelatron Corporation.
Kelatron Corporation, based in Ogden, Utah, is a leading manufacturer of bioactive mineral nutrients. For over 30 years, the company has been a key supplier of specialty minerals and custom blends to manufacturers of nutritional and dietary supplements. Recent investments by Kelatron in upgrading manufacturing facilities and introducing a new line of premium minerals have positioned the company well for future growth. The combination of Kelatron's micronutrient range of products with the macronutrients of calcium, magnesium, potassium and phosphorus currently manufactured by Innophos is expected to significantly strengthen Innophos' offering to its food, beverage and dietary supplement customers.
Randy Gress, Chairman and Chief Executive Officer of Innophos, commented, "The acquisition of Kelatron represents a perfect fit with our strategy of targeting high quality bolt-on acquisitions that add specialty ingredient product technologies to complement our current product offering. Kelatron has a strong position in an attractive, growing, nutraceutical market and has significant manufacturing and technical capability. The combination of Innophos' strong worldwide customer relationships within the food, beverage and pharmaceutical industries and Kelatron's expertise in the high value, high growth rate, mineral fortification market is expected to bring significant benefits to both companies."
The acquisition is structured as a stock purchase by Innophos' wholly owned subsidiary, Innophos, Inc. of Kelatron's holding company, KI Acquisition, Inc., for a purchase price of $21 million, subject to specified adjustments. KI Acquisition, Inc. is a portfolio company of Hadley Capital and First Analysis. Closing of the transaction occurred upon execution of the purchase agreement effective as of October 31, 2011. The acquisition is expected to be accretive to results in 2012.
About Innophos Holdings, Inc.
Innophos is the leading North American producer of specialty phosphate products, offering performance-critical ingredients with applications in food, beverage, pharmaceutical, oral care and industrial end markets. Innophos produces complex phosphates to the highest standards of quality and consistency demanded by customers worldwide, develops new and innovative phosphate-based products to address specific customer applications and supports these high-value products with industry-leading technical service. Headquartered in Cranbury, New Jersey, Innophos has manufacturing operations in Nashville, TN;Chicago Heights, IL; Chicago (Waterway), IL; Geismar, LA; Port Maitland, ON (Canada); and Coatzacoalcos, Veracruz and San Jose de Iturbide (Mission Hills), Guanajuato (Mexico).