DSM to Acquire Ocean Nutrition Canada

KAISERAUGST, SwitzerlandRoyal DSM has agreed to buy Ocean Nutrition Canada (ONC) for CAD 140 million ($137.7 million USD) in an all cash transaction. DSM said the acquisition of ONC, a leader in the fish oil market, will strengthen its lipids business, specifically expanding its current portfolio of omega-3  ingredients. According to DSM, the transaction has a total enterprise value of CAD540 million ($531.6 million USD); ONC expects fiscal 2012 net sales of CAD 190 million ($187.0 million USD), with an EBITDA (earning before taxes, depreciation and amortization) of CAD 55 to 60 million ($54.1 to 55.0 million USD). The transaction is expected to close in the second half of 2012.

The Halifax-based ONC supplies fish-oil-derived DHA (docosahexaenoic acid) and EPA (eicosapentaenoic acid) omega-3 ingredients for use in supplements, foods and beverages. ONC has about 415 employees and maintains production sites in Canada, the United States and Peru. Over the past five years, ONC has charted an annual growth (in local currency) of about 20 percent.

ONC's fish-derived fatty acids complement DSM's existing microbial fatty acids (DHA and arachadonic acid, or ARA). DSM said the acquisition will strengthen its global lipids business, adding ONC's NOrth American fish oil market strength, while DSM's global infrastructure will help bring ONC omegas to the global marketplace. DSM's range of applications and products will also receive a boost from the addition of ONC's encapsulation and emulsification technologies.

DSM reported the acquisition of ONC, the fifth DSM acqusition since September 2010, is expected to be accretive to earnings per share in 2013.

Feike Sijbesma, CEO and chairman of the DSM Managing Board, said the acquisition of ONC was the logical next step following DSM's successful acquisition of Martek in 2011. Our science-based knowledge and expertise in nutritional ingredients will help to further grow Ocean Nutrition Canadas business as part of DSM," he added.

Martin Jamieson, president and CEO of ONC, said the acquisition was also logical step in his company's future, noting the company has grown over the past 15 years from start-up to global leader in fish oil derived omega-3. "DSM is the right partner to guide our next phase of development and they will be great stewards of Ocean Nutrition going forward," he said. "We are delighted that they appropriately recognize the value of ONCs worldwide market success, our leading edge technology platform and especially our immensely talented workforce."

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