Triarco, based in New Jersey, specializes in botanical and enzyme-based ingredients for sports nutrition products, dietary supplements and fortified beverages. Triarco also manufactures a line of organically-bound minerals that Innophos said will be highly complementary with the company’s existing mineral ingredients businesses, Kelatron and AMT, which Innophos acquired in 2011 and 2012 respectively.
Triarco has been manufacturing custom ingredients for the food, beverage, dietary supplement and nutraceutical industries for more than 30 years. Triarco specializes in botanical and enzyme based ingredients that target growing markets such as sports nutrition, dietary supplements and fortified beverages.
"The acquisition of Triarco continues the strategy of expanding our business into product categories closely related to our existing specialty phosphate offerings,” said Randy Gress, Innophos CEO. “Triarco also has strong positioning in, and a deep understanding of, a variety of end markets, and has been successful in developing a co-branding strategy to improve consumer recognition of the ingredients they provide.”
Doubling nutritional ingredients revenues
Triarco has annualized revenues of approximately $25 million and margins in line with those earned by Innophos' existing ingredients businesses, the company said. The combined businesses of Kelatron, AMT and Triarco will reportedly bring Innophos' combined annual revenues in the nutritional ingredients business to more than $50 million.
In the transaction, an Innophos subsidiary purchased all of Triarco's assets for $45 million in cash plus $1 million in shares of Innophos Holdings, Inc. Common Stock. The cash portion of the purchase price was financed by Innophos from borrowings under the company's senior credit facility. The acquisition includes potential for additional incentive consideration contingent upon success in delivering growth objectives over the next two years. Closing of the purchase occurred upon execution of the definitive agreements effective as of December 31, 2012. The acquisition is expected to be accretive to earnings per share in 2013.