DSM, the Dutch global Life Sciences and Materials Sciences company, announced today it has entered into a definitive agreement with Clearwater Fine Foods to acquire Ocean Nutrition Canada, the world's largest supplier of Omega-3 ingredients within the food market, in an all-cash deal for approximately 420 million euros ($534 million), including debt. Subject to customary conditions, the transaction is expected to close in the latter stages of 2012.
The acquisition will allow DSM to reinforce and complement its newly established, global Nutritional Lipids growth platform. It will strengthen DSM's position in the North American dietary supplement market by adding fish oil derived omega-3 fatty acids to its portfolio and it will allow DSM to further leverage its global infrastructure to expand Ocean Nutrition Canada's sales in dietary supplement markets outside North America and in the food and beverage markets worldwide.
DSM expects the transaction to be EPS accretive as from 2013. The acquisition is expected to accelerate revenue growth through material revenue synergies with expanded distribution, marketing and product development. Customary operational efficiencies will also be realised in the integration process.
"Our science-based knowledge and expertise in nutritional ingredients will help to further grow Ocean Nutrition Canada's business as part of DSM. 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," said Feike Sijbesma, CEO and Chairman of the DSM Managing Board
The acquisition of Ocean Nutrition Canada is the fifth acquisition in the Nutrition cluster since September 2010. These acquisitions form an integral part of DSM's strategy for its Nutrition cluster and will contribute to the current and future growth of DSM's attractive portfolio in health, nutrition and materials. The resulting stronger, more stable growth and profitability will enable DSM to continue to deliver shareholder value.
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