Dutch Royal DSM in €417m deal to acquire Ocean Nutrition Canada

Dutch life and materials sciences company Royal DSM NV (AMS:DSM) said on Friday it would take over Ocean Nutrition Canada, a supplier of fish-oil derived Omega-3 fatty acids (EPA and DHA) to the dietary supplement and food and beverage sectors, for an enterprise value of CAD540m (USD528m/EUR417.1m).

With this deal, DSM would add to its Omega-3 fatty acids portfolio, while reaching a variety of market segments and applications. Its newly created, global growth platform Nutritional Lipids will be expanded, while DSM’s position in the North American dietary supplement market will be increased through the combination.

The Dutch group, which aims to take Ocean Nutrition Canada’s products to other markets outside North America, said the transaction would step up revenue growth through synergies from wider distribution, marketing and product development. DSM also expects the deal to contribute to its EPS as from 2013.

Martin Jamieson, president and CEO of Ocean Nutrition Canada, said that becoming part of a group with much larger scale and reach was the next logical step in his company’s development.

Completion is expected in the second half of this year, pending customary conditions.

The vendors are Clearwater Fine Foods and Richardson Capital funds.

Ocean Nutrition Canada, with some 415 employees, has production presence in Canada, the US and Peru. The company, set up in 1997, grew at an average annual rate of nearly 20% over the past five years.