Royal DSM, an international life sciences and materials science-based company based in the Netherlands, has signed a definitive agreement with Clearwater Fine Foods and funds managed by Richardson Capital to purchase Ocean Nutrition Canada for a total enterprise value of C$540m ($530.5m).
The acquisition, which is subject to customary conditions, is expected to close in the first half of fiscal 2012.
Founded in 1997 and headquartered in Halifax, Nova Scotia, Ocean Nutrition Canada is a supplier of fish-oil derived Omega-3 fatty acids (EPA and DHA) to the dietary supplement and food and beverage markets.
The Canadian company, which employs nearly 415 people, operates production sites in Canada, the US and Peru.
According to DSM, fish derived Omega-3 products of Ocean Nutrition Canada will complement its microbial DHA and ARA products as they cater to different customer needs and target different market segments.
The Netherlands-based company believes that the new acquisition of Ocean Nutrition Canada will extend its portfolio of Omega-3 fatty acids by reaching a wide range of different market segments and applications.
Also, the transaction will strengthen and complement DSM's newly established, global Nutritional Lipids growth platform, while driving revenue growth through material revenue synergies with expanded distribution, marketing and product development.
DSM managing board CEO and chairman Feike Sijbesma said that the acquisition of Ocean Nutrition Canada is the logical next step in developing the company's Nutritional Lipids into a major growth platform for its Nutrition cluster, following its purchase of Martek in 2011.
"This acquisition fully fits DSM's strategy as we continue to create value for all stakeholders by providing innovative, sustainable solutions to the world's greatest challenges," Sijbesma added.
The new deal is the fifth acquisition in the Nutrition cluster since DSM in September 2010 announced its corporate strategy - DSM in Motion: driving focused growth.