New Jersey-based Innophos Holdings, Inc., the leading North American producer of specialty phosphate products for the food, beverage, pharmaceutical, oral care and industrial end markets, announced that it had acquired the Kelatron Corporation. Specialty phosphates acts as flavor enhancers in beverages, electrolytes in sports drinks, texture additives in cheeses, leavening agents in baked goods, calcium and phosphorus sources for nutritional supplements, pharmaceutical excipients and cleaning agents in toothpaste.
Kelatron Corporation, based in Ogden, Utah, is a leading manufacturer of bioactive mineral nutrients. For over 30 years, the company has been a key supplier of specialty minerals and custom blends to manufacturers of nutritional and dietary supplements. Recent investments by Kelatron in upgrading manufacturing facilities and introducing a new line of premium minerals have positioned the company well for future growth. 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.
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.
Innophos was previously part of Rhodia and since 2004 is controlled by Bain Capital and it employs some 1,000 people worldwide. Last year their assets were of US$627 million and their revenues US$714 million. Speciality ingredients accounted for 64% of their revenues, food and technical grade phosphoric acid 15%, STPP and detergent grade phosphoric acid 11%, and granulated TSP and other fertilizers 10%. Due to the environment concerns, the STPP market is now much smaller and a further decline is expected. In the last years they doubled their food grade phosacid capacity at Coatzacoalcos, Mexico.