Innophos acquires AMT Labs for $27 million

Acquisition boosts Innophos' presence in food, beverage, nutritional markets

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CRANBURY, N.J.—Innophos Holdings, Inc., which specializes inthe production of performance-critical and nutritional specialty ingredients,has announced the completion of its acquisition of privately held AMT Labs,Inc. Per the terms of the transaction, Innophos, Inc., a wholly ownedsubsidiary of Innophos Holdings, purchased 100 percent of the equity of AMTLabs, Inc. as well as an affiliated real estate company holding all AMT Labsreal property, which includes unused land and buildings for future expansion.The cash transaction had a total purchase price of $27 million, with $19.5million earmarked for the AMT Labs purchase and $7.5 million earmarked for thereal estate company.
The acquisition includes the potential for additionalconsideration if success is achieved in developing new market opportunities.The close of the transaction occurred with the execution of the definitiveagreements, and the acquisition is expected to be accretive to Innophos'results for 2012. No details were disclosed as to Innophos' intentions for theover 70 employees at AMT Labs' or its North Salt Lake, Utah-based facility.
"The acquisition of AMT represents the second step in ouradjacency strategy to expand in product categories closely related to ourexisting specialty phosphate product line.  AMT's strengths are highly complementary to our newbioactive mineral ingredients business platform, providing high-qualitymanufacturing facilities better able to support the future growth expected inthis product range," Randy Gress, Chairman and CEO of Innophos, said in a pressrelease regarding the deal. "AMT has also been developing new market potentialfor its products which we expect will bring commercial successes in addition tothe expected portfolio synergies of the combined business of AMT and Kelatron,which itself has performed strongly since its acquisition by Innophos lastyear."
AMT Labs has more than 20 years of experience with themanufacturing of high-quality custom ingredients for the food, beverage,confectionary and nutraceutical industries, with a specialization in mineralingredients essential to the human diet that are manufactured in a variety offorms, including as chelates, in order to be easily digested (bioactive).
The acquisition is highly complementary to InnophosHoldings' existing areas of specialization, as Innophos also has a presence inthe food, beverage, dietary supplements, pharmaceutical, oral care andindustrial end markets. Innophos' purchase of AMT Labs also complements itsacquisition of Kelatron in November of last year. The Ogden, Utah-based companymanufactures bioactive mineral nutrients, with more than 30 years of experienceas a key supplier of minerals and custom blends to companies that manufacturenutritional and dietary supplements. Innophos acquired Kelatron through a stockpurchase by Innophos, Inc. of KI Acquisition, Inc., Kelatron's holding company.The purchase price for the transaction was $21 million subject to specifiedadjustments. The acquisition was expected to be accretive to Innophos' resultsthis year.
Innophos noted in a press release that the combined businesses ofthe two acquisitions entrench it as a leader in high-growth U.S. bioactivemineral ingredients, resulting in annualized revenues of approximately $30 million.
SOURCE: Innophos press release

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