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Innophos is considering a sale: Bloomberg
Posted on Wednesday, 11 September 2019 10:16
Shares in Innophos Holding closed up 13.0 per cent yesterday after Bloomberg reported the food additives maker is exploring options, including a sale.

Citing people with knowledge of the situation, the news provider observed that the business, which manufactures products used in cheese and sports drinks, is working with a financial advisor on a strategic review.

However, these same sources cautioned that no final decision has been made and the company could decide not to pursue a sale.

Innophos’ stock price climbed to USD 32.47 when the ball rang yesterday, which gave the group a market capitalisation of USD 639.37 million.

The New Jersey-headquartered company claims to be a leading international producer of essential ingredients for the bakery and snacks, beverage, dairy and meat and poultry sectors, as well as also having a presence in the health and wellbeing market by providing dietary supplements and nutrition products.

In the six months to 30th June 2019, Innophos generated net sales of USD 376.45 million, an 8.7 per cent decrease from USD 412.17 million in the corresponding period of 2018.

Net income totalled USD 10.10 million in H1 2019, a 41.1 per cent decline from USD 17.16 million in H1 2018.

Innophos’ capabilities include improving the taste and texture of sports drinks, baked goods and cheese, as well as contributing to the scrubbing agents in toothpaste and ingredients used in vitamins.

The group’s last acquisition took place in 2017 when it paid USD 125.00 million for Novel Ingredients, a botanical and nutraceutical raw materials wholesaler, from GenNx360 Management.

Zephyr, the M&A database published by Bureau van Dijk, shows there has been 196 deals targeting other basic organic chemical manufacturers announced worldwide in 2019 to date.

The largest of these involves Advent International buying Italian bile acid maker ICE for EUR 600.00 million.

Zhejiang Satellite Petro-chemical, Zibo Qixiang Tengda Chemical, Zhejiang Communications Technology and Hengyi Petrochemical, all of which are based in China, were among others also targeted in deals in the year so far.

© Zephus Ltd