The Muscle Mag
The acquisition encompasses dsm-firmenich’s marine lipids fish oil omega-3 business for the food and beverage, dietary supplement, and pharma markets, along with the MEG-3 brand and production facilities in Piura, Peru, and Mulgrave, Canada.
As part of the agreement, dsm-firmenich will acquire a 29% minority stake in KD Pharma’s parent company O³ Holding GmbH.
Oscar Groet, CEO of the KD Pharma Group, expressed excitement about integrating dsm-firmenich’s marine lipids portfolio into the KD Pharma Group, emphasizing the alignment with their vision of being leaders in lipid technology and enhancing innovation and value for customers.
dsm-firmenich revealed that the MEG-3 business generated around €170 million in sales in 2023, with approximately 200 employees transitioning to KD Pharma as part of the deal. The completion of the transaction is anticipated by the end of 2024, pending regulatory approvals.
Building a portfolio
The partnership expands KD Pharma Group’s lipids CDMO business, positioning them as a strong player in marine lipids through the combined expertise of both companies and the scale of dsm-firmenich’s Piura and Mulgrave sites alongside KD Pharma Group’s high concentration capabilities.
DSM acquired the MEG-3 fish oil business through its purchase of Ocean Nutrition Canada (ONC) in 2012 and previously acquired Martek Biosciences Corporation’s algae platform in 2011. Adam Ismail, KD Pharma’s chief strategy officer, clarified that the acquisition includes part of the former ONC business but excludes the powder manufacturing operations in the U.S.
dsm-firmenich will continue to offer MEG-3 fish oils for early life nutrition markets and MEG-3 powders, while their algae business is not part of this deal. Ismail noted that with this acquisition, the combined entity would become the largest manufacturer of omega-3 fish oils, building on DSM’s existing volume leadership.
