Innophos Acquires Kelatron in $21M Stock Deal

CRANBURY, N.J.Innophos Holdings Inc. (NASDAQ:IPHS) announced the acquisition of Ogden, Utah-based Kelatron Corp., a supplier of specialty minerals and custom blends to the nutrition and dietary supplement market. The acquisition, which closed Oct. 31, was 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. The combination of Kelatron's micronutrient range of ingredients combined with the macronutrients of calcium, magnesium, potassium and phosphorus current supplied by Innophos will significantly strengthen the company's portfolio of offerings to the dietary supplement and food/beverage markets.

"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," said Randy Gress, Innophos' chairman and CEO. "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."

Both companies have also made strategic investments of late to take advantage of growth opportunities. Kelatron recently completed multi-million dollar upgrades to its manufacturing facility, adding spray drying and jet million equipment to increase its processing capabilities and extend its product line. And in early 2011, Innophos announced production expansions of three of its facilitiesPort Maitland, Ontario, Chicago Heights, IL, and Nashville, TNto increase its volumes of potassium phosphates, tri-calcium phosphates and mono-calcium products including CAL-RISE®.