Innophos Acquires Kelatron for $21 Million

CRANBURY, N.J.Innophos Holdings, Inc., a producer of specialty phosphate products for the food, beverage, pharmaceutical, oral care and industrial end markets, has acquired bioactive mineral nutrients maker Kelatron Corporation for $21 million in stock.

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 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.

 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 Innophos Chairman and CEO Randy Gress. 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."