Cognis announces that it will acquire Napro Pharma AS, a Norwegian manufacturer of high-quality omega-3 fish oils for the nutrition industry. The Napro Pharma product portfolio further strengthens Cognis’ Nutrition & Health Strategic Business Unit as a leading supplier of natural-source ingredients sold worldwide for the dietary supplement and functional food markets. The transaction is expected to be completed by end of June, 2006.
Napro Pharma produces omega-3 fish oil concentrates in ethyl ester and triglyceride forms that are highly acclaimed in the industry for their formulation advantages and high potency. Located on the west coast of Norway, the company has seen double-digit growth in recent years as a result of its science-based products and its technological expertise. To meet the soaring demand for omega-3s, the company has expanded its facilities, investing heavily in cutting-edge processes and equipment, such as a new distillation unit installed earlier this year. Its processes for manufacturing, packaging and labeling liquid preparations comply with pharmaceutical GMP guidelines, and the company is also licensed to manufacture marine and vegetable oils in bulk for pharmaceutical use.
“With over 40 years of experience serving the health and nutrition industries, and our global network of scientific, technical, sales and marketing experts, we have the resources in place to further build on Napro Pharma’s outstanding products and services around the world,” says Stephane Baseden, Group Vice President, Cognis Nutrition & Health. “This acquisition enhances Cognis’ ongoing commitment to help our customers lead their markets and meet consumer demands for innovative wellness products.”
Market forecasts indicate a healthy growth rate of about 12 percent for fish oil omega-3s, with concentrates leading the category. Mr. Baseden points out that “Cognis will be working hard to provide customized products and new concepts so our business partners can fully benefit from the growth of the omega-3 market”.
Omega-3s are polyunsaturated fatty acids backed by decades of science showing benefits for overall health, specifically for the heart and brain. The U.S. Food and Drug Administration has issued a qualified health claim for reduced risk of coronary heart disease associated with foods and dietary supplements containing omega-3 fatty acids.
This acquisition gives Cognis entry into a new health platform – brain health. Omega-3s are also an important addition to Cognis’ natural ingredients for the heart health segment, one of the principal areas of focus in the Nutrition & Health business unit. Omega-3s are a perfect complement to Cognis’ Vegapure® plant sterols and sterol esters, which have been clinically proven to lower cholesterol. As the world’s largest producer of plant sterol esters, Cognis provides heart health ingredients for a broad range of functional foods and dietary supplements. Other leading wellness ingredients include Tonalin® CLA, the number one selling brand of conjugated linoleic acid, clinically shown to reduce body fat and preserve muscle mass. Renowned for its high-quality, natural-source antioxidants including Covitol® natural-source vitamin E, Betatene® natural beta-carotene and Xangold® natural lutein esters, Cognis continues to expand its portfolio of core products as new wellness trends emerge.
Cognis is a worldwide supplier of innovative specialty chemicals and nutritional ingredients. The company employs about 8,000 people, and it operates production sites and service centers in 30 countries. Cognis has dedicated its activities to a high level of sustainability and delivers natural source raw materials and ingredients for food, nutrition and healthcare markets, and the cosmetics, detergents and cleaners industries. Another main focus is on products for a number of other industries, such as coatings and inks, lubricants, textiles, as well as agriculture and mining. The company holds a 50-percent stake in the joint venture Cognis Oleochemicals, one of the world’s leading manufacturers of natural-source oleochemical basestocks.
Cognis is owned by private equity funds advised by Permira, GS Capital Partners, and SV Life Sciences. In 2005, Cognis recorded sales of 3.18 billion euros and an Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization and exceptional items) of 356 million euros.
Wulf Klüppelholz, Corporate Communications Manager
Cognis Deutschland GmbH & Co. KG
E-mail: [email protected]
Sabina Sprio, PR-Consultant
JP:PR PR-Beratung GmbH
E-mail: [email protected]