DSM-Firmenich has announced the sale of its MEG-3 fish oil business to KD Pharma Group, a contract development and manufacturing organisation that is active in pharmaceutical and nutritional lipids.
As part of the transaction, DSM-Firmenich will obtain a minority stake of 29% in KD Pharma’s parent company O³ Holding GmbH.
The move comes as DSM-Firmenich aims to focus its lipids activities on its unique algae-based Omega-3 portfolio, while continuing to offer MEG-3 fish oils for the Early Life Nutrition markets as well as MEG-3 powders.
“Following our strategic portfolio review, we decided to de-prioritise certain business segments, including the MEG-3 business,” said a DSM-Firmenich spokesperson. “This will allow us to sharpen our focus on our core strengths and deliver even greater value to our customers.”
The transaction includes DSM-Firmenich’s MEG-3 business for the food and beverage, dietary supplement and Pharma markets, along with the production facilities in Piura, Peru and Mulgrave, Canada.
The MEG-3 business represented approximately €170 million in sales in 2023, with approximately 200 employees who will transfer to KD Pharma.
“We are excited to welcome the MEG-3 business and its talented team to the KD Pharma Group,” said a spokesperson for KD Pharma. “This acquisition strengthens our position as a leading CDMO in the pharmaceutical and nutritional lipids space, and we look forward to building on the legacy of the MEG-3 brand.”
The transaction is expected to be completed towards the end of 2024, subject to customary regulatory approvals.
by Siân Yates
Source: foodbev.com
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The sale includes custom formulation and contract manufacturing capabilities for the nutrition market from the production facilities in New Jersey and Utah in the United States, and Tamaulipas, Mexico. Financial terms of the transaction were not disclosed.