Dive Brief:
- CoreFX Ingredients, a food manufacturing supply company, has expanded its portfolio by acquiring the Wisconsin-based powder delivery system Connoils. The financial terms of the deal were not disclosed.
- Connoils is a “boutique nutritional technology company specializing in powder delivery systems and specialty oil distribution,” the company said. CoreFCX believes the “strategic” deal will allow it to expand its research and development initiatives.
- Evanstown, Illinois-based CoreFX has a mission of delivering technological advancements in health and nutrition to increase customer satisfaction, it said. Its latest acquisition comes on the heels of founder and CEO Dennis Neville also acquiring back a majority stake in the company from Ornua, an Irish dairy processor, back in March.
Dive Insight:
Under the terms of the deal, Connoils, which produces oil powders that may be used in food, supplements and functional beverages, will operate under the same business unit as CoreFX but partner with an oil distributor to manage the bulk oils business.
“I am thrilled to start delivering on our promise of evolving quickly and accelerating the growth of CoreFX to make the world a better place through nutrition, ” said Neville on the deal. “The acquisition of Connoils is a perfect complement to our business, elevates our powder-delivery systems through our novel encapsulation technology, and is an important next step in the continued growth of our Health through Nutrition platform.”
Stacy Peterson, a former employee of Cargill, founded Connoils in 2007 after her division of the food processing giant ceased operations. Peterson, along with her husband Keith and former Cargill management, decided to start the company after the closure left her unemployed and customers without products.
The company’s organic oils and oil powder products are used in food products, supplements, beauty products and more.
CoreFX is hoping its acquisition of Connoils will allow for an expansion of R&D efforts as well as increase its consumer reach.
Founded in 2016, CoreFX uses technologies such as spray-drying and dry-blending to produce dairy, cheese and lipid powder ingredient solutions for its customers which include food manufacturing and foodservice companies. Its drying technology is supposed to increase ingredients potency, according to the company, while other proprietary technologies such as liposomal encapsulation and nano encapsulation allow ingredients to have an extended nutritional benefit and higher absorption rate.