FMC completes acquisition of Omega-3 concentrates producer Epax

US-based chemical company FMC has completed the acquisition of Omega-3 fatty acid concentrates manufacturer Epax Nutra and Epax UK (Epax) for approximately $345m.

The acquisition is part of FMC’s strategy to strengthen its presence in the high-growth nutraceutical market and expand its health and nutrition business portfolio.

Epax, which was part of Omega-3 pharmaceutical company Trygg Pharma, is a manufacturer of Omega-3 EPA/DHA fatty acids that are primarily used in the nutraceutical, food and active pharmaceutical ingredient (API) intermediate markets.

The company employs purification and concentration production techniques that meet the requirements of the fast-growing market segments for high-concentration Omega-3 fatty acids.

The acquisition includes Epax’s two production facilities in Alesund, Norway, and Seal Sands, UK.

It adds a premium Omega-3 fatty acid technology and brand to FMC’s portfolio of micro-crystalline cellulose, alginates, carrageenan, pectin and other functional ingredients.

As part of the deal, FMC has entered into a long-term supply agreement with Trygg Pharma to provide its high-concentration Omega-3 fish oil for use as an active pharmaceutical ingredient.

FMC stated that the deal reflects a 2013 EBITDA multiple in line with the company’s current trading multiple and is expected to be immediately accretive to its earnings per share (EPS).

FMC chairman, president and CEO Pierre Brondeau said that earlier in the year, the company committed to investing in its health and nutrition platform by expanding its participation in nutraceuticals and similar high-growth markets.

"Today’s announcement underscores our commitment to this strategy and builds on our strengths in functional ingredients for the food and pharmaceutical markets," Brondeau added.

"It also illustrates our resolve to meet or exceed FMC’s Vision 2015 growth goals through targeted acquisitions that complement our technology, business and financial priorities."

Epax CEO Ola Snove said: "FMC’s financial strength, global market access and commitment to growth will help accelerate our ability to serve the quality and reliability demands of our customers and consumers."

FMC noted that it will work with the Epax team to cater to the market with an even broader portfolio of products, especially in the nutraceutical market.

FMC is a diversified chemical company providing services to agricultural, industrial, environmental and consumer markets across the world.

---

Image: FMC noted that it will work with the Epax team to cater to the market with an even broader portfolio of products, especially in the nutraceutical market. Photo courtesy of PRNewsFoto/FMC Corporation.