Royal DSM (Heerlan, Netherlands) has agreed to acquire fish oil company Ocean Nutrition Canada (Halifax, NS) from Clearwater Fine Foods and funds managed by Richardson Capital for C$540 million. Ocean Nutrition supplies omega-3 fatty acids (EPA and DHA) to the dietary supplement and food and beverage markets. Founded in 1997, it has approximately 415 employees and anticipated net sales for 2012 of C$190 million with an EBITDA of C$55-60 million.
The company has averaged 20% annual growth for the past five years. The acquisition is described as complementary to DSM’s acquisition of Martek, a manufacturer of algae-based DHA and ARA for $1.1 billion in February 2011. “Given the very different value proposition and pricing of fish oil derived PUFAs (naturally occurring mixtures of DHA and EPA) compared to microbial derived PUFAs (DHA and ARA), these products do not compete,” the company stated. Other recent DSM purchases in the nutrition arena include a $37 million deal with Verenium Corp. in March 2012 for the company’s oilseed processing business, exclusive license to certain enzymes, and access to new gene libraries.
In 2010-2011 DSM acquired two carotenoid companies using fermentation technologies: Microbia Inc. in the United States and Vitadene in Spain. DSM expects its nutrition and food business to achieve annual sales of about €4 billion in 2013, Reuters reported. DSM is an NCN Cornerstone Investor.
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