based in New Jersey, Novel Ingredients is primarily owned by New York private equity firm GenNx360 Capital Partners.

To be paid in cash, the transaction is expected to close in the third quarter of this year and subject to customary closing conditions, including review under the Hart Scott Rodino Antitrust Improvements Act.

Innophos will fund the acquisition by borrowing from its existing credit facility.

Innophos chairman, president and chief executive officer Kim Ann Mink said: "The acquisition of Novel Ingredients is an exceptional opportunity for our company and a significant step forward in achieving our strategic goals.

“This transaction fully aligns with our Vision 2022 strategic priorities to grow our food; health and nutrition portfolio, increase our presence in attractive nutrition end-markets, and develop innovative solutions that better serve our customers.

“Additionally, it will more closely align Innophos with important consumer mega-trends such as health and wellness, energised ageing and clean labels.”

Innophos anticipates that the acquisition would lead to estimated cost synergies of $4m per annum. Revenue synergies are also expected due to combined product technology and customer relationships.

Mink added: "Bringing Novel Ingredients and Innophos together will create a food, health and nutrition platform of nearly $0.5bn in revenue, representing 60% of our total combined company.

“The combined company will benefit from leading, innovative technology; a broader and deeper product portfolio; and access to new market segments.”

Novel Ingredients manufactures and supplies speciality ingredients such as botanicals, proteins, amino acids to immune health, sports nutrition, and cognitive health firms.

Novel Ingredients chief executive officer Rick Antonoff said: "We believe that joining the Innophos team will enable Novel Ingredients to deliver enhanced value to our existing customers, and will present exciting opportunities to expand our business into new market adjacencies. We look forward to working closely with the Innophos team to ensure a smooth transition."

For this transaction, Lazard and Baker Botts LLP are respectively acting as financial and legal advisers to Innophos, while Winston & Strawn LLP is serving as legal adviser to Novel Ingredients and GenNx360 Capital Partners.