One Rock to acquire ingredients producer Innophos for $932m

An affiliate of private equity firm One Rock Capital Partners has signed an agreement to acquire essential ingredients producer Innophos Holdings for about $932m.

One Rock will purchase all outstanding shares of Innophos for $32 per share in cash.

Approved by Innophos’ Board of Directors, the deal includes the assumption of debt.

Innophos chairman, president and CEO Kim Ann Mink said: “After careful consideration and a thorough review of our strategic alternatives, including an outreach programme to multiple potential financial and strategic partners over several months, the Board determined that a sale to One Rock is in the best interest of all of our stakeholders.

“We remain confident that our transformational strategy is the right path forward for Innophos; however, executing on this strategy in an increasingly volatile macroeconomic and complex financial environment as a small-cap public company remains challenging and could take longer than initially expected.”

One Rock intends to fund the acquisition using a combination of committed equity financing provided by its affiliates in addition to committed debt financing from other financial institutions.

Completion of the deal is subject to the stockholder, regulatory approvals and customary closing conditions and is expected to take place in the first quarter of next year.

One Rock managing partner Tony Lee said: “Innophos’ innovative ingredient solutions are used by world-leading brands across a wide range of attractive food, health, nutrition and industrial markets.

“In drawing upon One Rock’s extensive experience, part of our goal is to maximise Innophos’ growth potential by continuing to expand its presence in high-growth food, health and nutrition markets, while further strengthening and optimising its cash-generative core business.”