Innophos acquires ingredients firm AMT Labs

Innophos, a US-based nutritional speciality ingredients company, has completed the acquisition of AMT Labs, a manufacturer of custom ingredients for the food, beverage, confectionery and nutraceutical industries, for $27m.

The transaction includes 100% equity of AMT Labs and an affiliated real estate company, which owns all AMT real property, including unused land and buildings to support future expansion.

Of the total purchase price, $19.5m was paid for AMT Labs, while the rest to the real estate company.

Innophos expects the transaction to be accretive to results in 2012.

AMT, a privately-held firm based in Utah, US, specialises in the manufacture of mineral ingredients that are essential for the human body, including chelates and bioactive ingredients.

According to Innophos, the acquisition of AMT is complementary to the Kelatron business, a manufacturer of bioactive mineral nutrients that was acquired by the company in November 2011.

The combined businesses will strengthen Innophos’ position in the US bioactive mineral ingredient market and are likely to generate annual revenues of approximately $30m.

Innophos chairman and chief executive officer Randy Gress said the acquisition is part of the company’s strategy to expand in product categories closely associated with its existing speciality phosphate product line.

"AMT’s strengths are highly complementary to our new bioactive mineral ingredients business platform, providing high-quality manufacturing facilities better able to support the future growth expected in this product range," Gress added.

Innophos has been strengthening its presence in speciality ingredient market – on 1 August 2011, it formed a new subsidiary in China, called Innophos (Taicang) Food Ingredients Manufacturing, and in November 2011, it acquired ingredient firm Kelatron for $21m.

Innophos, headquartered in Cranbury, New Jersey, provides nutritional speciality ingredients for use in food, beverage, dietary supplements, pharmaceutical, oral care and industrial end markets.