May 22, 2012
DSM acquires Ocean Nutrition Canada spur nutritional lipids sector
Press release
Royal DSM, the global life sciences and materials sciences company, announced the acquisition of Ocean Nutrition Canada at a total enterprise value of CAD540 million, or about US$530 million.
The acquisition will allow DSM to strengthen and complement its newly established, global Nutritional Lipids growth platform. By leveraging forms, encapsulation and emulsification technologies, DSM can expand the range of applications and products.
The acquisition is expected to accelerate revenue growth through material revenue synergies with expanded distribution, marketing and product development. Customary operational efficiencies will also be realised in the integration process.
The transaction is expected to close in H2 2012 and DSM expects the transaction to be EPS accretive as from 2013.
Ocean Nutrition Canada is a leader in fish-oil derived Omega-3 fatty acids for dietary supplements, highly complementary to DSM's successful Martek acquisition in 2011.
Ocean Nutrition Canada's net sales in 2012 is expected to be approximately CAD190 million (US$187 million) with EBITDA of CAD55-60 million (US$54-59 million). The average annual growth of the company over the past 5 years in local currency amounted to nearly 20%.
