GenNx360 Capital Partners has completed the sale of Novel Ingredients, a provider of natural ingredients to the supplement industry, to publicly-traded Innophos Holdings, a producer of specialty ingredients used in the food, health, nutrition and industrial markets.
The total purchase price paid for Novel was $125 million in cash. This represents a 12.1x multiple of Novel’s estimated 2017 adjusted EBITDA and a 1.3x multiple of Novel’s estimated 2017 sales revenue. From 2008 to 2016 the company’s revenues have grown at a compounded annual growth rate of 19%.
Novel Ingredient is a supplier of botanical and nutraceutical raw materials that are used in the dietary supplement, sports nutrition, food and beverage, and pet care industries. The company’s products are sold in nine categories and include immune health, heart health, bone & joint health, sports nutrition & energy, antioxidants & specialty botanicals, cognitive health, protein & amino acids, flavors & sweeteners, and weight management.
Novel’s national service network provides its more than 400 nutraceutical and functional food partners from distribution facilities on both the east and west coasts. The company, founded in 1995, has approximately 100 employees and is headquartered near New York City in East Hanover, NJ (www.novelingredient.com).
Novel was a portfolio company of GenNx360 Capital Partners’ Fund II and was acquired in March 2014. The sale of Novel represents the second sale by GenNx360 in the last four months, following the May 2017 sale of Truck Bodies and Equipment International, a manufacturer of dump truck bodies and trailers, to Federal Signal for $270 million.
GenNx360 is a private equity firm focused on investing in industrial business-to-business companies in the middle market. Sectors of interest include industrial machinery and components, logistics and supply chain solutions, industrial and environmental services, food and agricultural, infrastructure equipment and services, specialty chemicals, packaging, and aerospace and defense. GenNx360 was founded in 2006 and is headquartered in New York (www.gennx360.com).
“We are delighted at the prospect of becoming part of Innophos,” said Rick Antonoff, Novel’s Chief Executive Officer. “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.”
Innophos (NASDAQ: IPHS) is an international producer of specialty ingredients that are used in the food, health, nutrition and industrial markets. The company had annual revenues of $725 million in 2016 and is headquartered about 50 miles southwest of New York City in Cranbury, NJ (www.innophos.com).
Lazard (www.lazard.com) was the financial advisor to Innophos on this transaction.
© 2017 Private Equity Professional | September 1, 2017
