Netherlands-based Royal DSM on Friday announced that it agreed to acquire Ocean Nutrition Canada from Clearwater Fine Foods and Richardson Capital for CAD 540 million.
Based in Halifax, Nova Scotia, Ocean Nutrition Canada is the world’s largest supplier of fish oil to the dietary supplement and food and beverage markets, with production sites in Canada, the United States and Peru. The company, which has about 415 employees, is expected to report net sales of CAD 190 million and an EBITDA of CAD 55 million to 60 million this year. The company’s average annual growth over the past five years has amounted to nearly 20 percent.
DSM said the acquisition will allow it to strengthen and complement its newly established Nutritional Lipids growth platform. It will strengthen DSM’s position in the North American dietary supplement market by adding fish oil to its portfolio and will allow the company to expand Ocean Nutrition Canada’s sales beyond North America. Additionally, by leveraging forms, encapsulation and emulsification technologies, the range of applications and products will be expanded.
This is DSM’s fifth acquisition within its nutrition division since September 2010.
“The acquisition of Ocean Nutrition Canada is the logical next step in developing our Nutritional Lipids into a major growth platform for our Nutrition cluster,” said DSM CEO Feike Sijbesma. “Our science-based knowledge and expertise in nutritional ingredients will help to further grow Ocean Nutrition Canada’s business as part of DSM. This acquisition fully fits DSM’s strategy as we continue to create value for all stakeholders by providing innovative, sustainable solutions to the world’s greatest challenges.”
The deal is expected to close in the second half of 2012.
