DSM to Acquire Ocean Nutrition Canada for 420 Million

HEERLEN, The NetherlandsRoyal DSM, the global Life Sciences and Materials Sciences company, has entered into an agreement to acquire Ocean Nutrition Canada (ONC) for 420 million in cash. The acquisition will extend DSMs portfolio of omega-3 fatty acids and strengthen DSMs global Nutritional Lipids growth platform, based on healthy, polyunsaturated fatty acids (PUFAs).

ONC is the worlds largest supplier of fish-oil derived omega-3 fatty acids (EPA and DHA) to the dietary supplement and food and beverage markets. The company is headquartered in Halifax, and has production sites in Canada, Peru and the United States.

ONCs fish-derived omega-3 products are highly complementary to DSMs microbial DHA and ARA products as they address different customer needs and reach different market segments.

The acquisition will strengthen and complement DSMs newly established, global Nutritional Lipids growth platform. It also will strengthen the companys position in the North American dietary supplement market by adding fish-oil derived omega-3 fatty acids to its portfolio and allow DSM to further leverage its global infrastructure to expand ONCs sales in dietary supplement markets outside North America and in the food and beverage markets worldwide.

The transaction, subject to customary conditions, is expected to close in the second half of 2012. The acquisition is expected to accelerate revenue growth through material revenue synergies with expanded distribution, marketing and product development.

The acquisition of ONC is the fifth acquisition in the Nutrition cluster since DSM in September 2010 announced its corporate strategy DSM in Motion: driving focused growth.

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.