Innophos Holdings acquires ingredients firm Triarco

North American producer of speciality phosphates Innophos Holdings has completed its purchase of the business and assets of New Jersey-based Triarco Industries for $46m.

Triarco is a privately held company that is engaged in the manufacturing of custom ingredients for the food, beverage, dietary supplement and nutraceutical industries.

Under the terms of the transaction, an Innophos subsidiary has acquired all of Triarco’s assets for $45m in cash and $1m in shares of Innophos Holdings.

According to Innophos, the acquisition is complementary to its mineral ingredients businesses Kelatron and AMT, which were acquired in 2011 and 2012 respectively.

Innophos anticipates that the combined businesses of Kelatron, AMT and Triarco will enhance its position in the high growth nutritional ingredients end markets with annual revenues of more than $50m.

Innophos Holdings chairman and chief executive officer Randy Gress said that the acquisition of Triarco is part of its strategy to expand the business into product categories that are closely related to its existing speciality phosphate offering.

"We look forward to leveraging our combined customer relationships and product offering to drive growth, while strengthening the quality and efficiency of our supply chain," Gress added.

Following the acquisition, which is expected to become accretive to earnings per share in 2013, Triarco founders Rodger Rohde Jr. and Christopher Rohdem will join Innophos and continue to lead the acquired entity within the Innophos Group.

Triarco, which has been in business for 30 years, is specialised in botanical and enzyme based ingredients that cater to emerging markets like sports nutrition, dietary supplements and fortified beverages, and has annual revenues of around $25m.

Innophos is a producer of nutritional speciality ingredients, with applications in food, beverage, dietary supplements, pharmaceutical, oral care and industrial end markets.