Royal DSM completes acquisition of Ocean Nutrition Canada

Royal DSM, a life sciences and materials sciences firm based in the Netherlands, has completed the acquisition of Ocean Nutrition Canada, a supplier of fish-oil derived nutritional products to the dietary supplement and food and beverage markets, for C$540m ($533.41m).

Ocean Nutrition Canada, headquartered in Nova Scotia, Canada, markets its products under the MEG-3 brand and has production facilities in Canada, the US and Peru.

Its net sales are expected to be approximately C$190m ($187.68m) for 2012, with EBIDTA of around C$60m ($59.26m).

The acquisition, which was announced in May 2012, will complement DSM’s nutritional lipids growth platform that was established following the takeover of Martek in 2011.

DSM’s nutritional lipids growth platform produces microbially derived nutritional lipids, while Ocean Nutrition Canada develops fish oil derived omega-3s, and with the latest acquisition, the Dutch firm will be able to offer products in both categories.

The deal will also allow DSM to use its global presence to expand the sales of Ocean Nutrition Canada’s products in markets outside North America.

DSM managing board chairman and CEO Feike Sijbesma said the company is seeking to grow its portfolio in health, nutrition and materials.

"After our successful acquisition of Martek in 2011, 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," Sijbesma added.

DSM expects the transaction to be accretive to the earnings per share from 2013.

This deal marks DSM’s fifth acquisition in the nutritional segment since it announced its corporate strategy to focus on growth in September 2010.

According to the company, it has invested a total €1.7bn in acquisitions, which includes nearly €1.3bn in the nutrition category, since 2010.

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Image: The acquisition of Ocean Nutrition Canada will complement DSM’s nutritional lipids growth platform that was established following the takeover of Martek in 2011. Photo: Royal DSM.