Dutch chemicals company DSM said Friday it is to acquire Ocean Nutrition Canada in an all-cash deal worth C$540 million ($530 million).
It signed a definitive agreement with Ocean Nutrition's major shareholders, led by Clearwater Fine Foods and funds managed by Richarson Capital. The transaction is expected to be completed in the second half of 2012, subject to customary conditions.
Ocean Nutrition, based in Nova Scotia, is the world's largest supplier of fish-derived Omega-3 fatty acids to the dietary supplement and food and beverage markets.
It is expected to report net sales of C$190 million and EBITDA of C$55-60 million in 2012, with average annual growth of the company over the past five years seen at around 20%, DSM said in a statement.
"The acquisition will allow DSM to strengthen and complement its newly established global Nutritional Lipids growth platform. It will strengthen DSM's position in the North American dietary supplement market," DSM said, adding that more than 21 million servings of Ocean Nutrition's MEG-3 branded product line are consumed daily in supplements and foods and beverages globally.
Ocean Nutrition, founded in 1997, has production sites in Canada, the US and Peru and employs around 415 staff.
