Royal DSM has emphasised “business continuity” and “smooth integration” following the completion of its $CAD540m (€436m) buy-out of the world’s largest omega-3 fish oil supplier, Ocean Nutrition Canada (ONC), today.
It is DSM’s fifth acquisition since it in 2010 announced its shift from being a fine chemicals player with a line in nutrients to a more focused life sciences company – bring its total spend in the period to about €1.7bn.
It also paid about €800m for Martek Biosciences in 2011 – the largest algae-sourced omega supplier in the world. Both acquisitions are being housed in its new Nutritional Lipids division.
Board member Stephan Tanda previously told us Martek’s infant food orientation and ONC’s greater strength in supplements and foods with its DHA (docosahexaenoic acid) and EPA (eicosapentaenoic acid) forms, offered a workable complementation.
DHA and EPA are most strongly linked to brain, heart and eye benefits in the scientific literature and have won health claims off the back of that in various markets including Europe and North America.
The deal gives DSM a stronghold in the North American dietary supplements market, while gaining access to ONC’s Powder-loc omega-3 manufacturing technologies that can be transferred to other parts of its portfolio.
“The nutritional lipids category is at an early stage yet well established and is based on strong science, offering significant growth opportunities across a broad range of market segments and applications,” DSM said.
“DSM can now uniquely offer a full range of products in the rapidly growing nutritional lipids category, offering both fish oil derived omega-3 fatty acids and microbially derived nutritional lipids.”
Leendert Staal, president and CEO of DSM Nutritional Products added: "Having completed the acquisition in a timeframe of only two months, we are very pleased to welcome all employees of Ocean Nutrition Canada to DSM today and I look forward to developing this exciting opportunity together.”
“Our attention is now fully focused on ensuring a smooth integration of the business in a timely and efficient manner. Business continuity and customer satisfaction will remain key priorities for us as we focus on future synergy generation between both businesses."