Aker BioMarine and Neptune close US$34m transaction to accelerate krill oil industry

995b1439-f42d-41a9-abba-b37a0a91e1b4articleimage.jpg

09 Aug 2017 --- Neptune Technologies & Bioressources Inc. and Aker BioMarine Antarctic AS have concluded an agreement whereby Aker BioMarine has acquired Neptune’s krill oil inventory and IP for a cash consideration of US$34 million, paid at closing.

The companies reported that Neptune will exit its bulk krill oil manufacturing and distribution activities, and it will support Aker BioMarine with the transition of its customers, krill oil inventory and intellectual property for a total cash consideration of US$34 million. 

“Neptune has made a strategic decision to withdraw as a bulk krill oil supplier, while Aker BioMarine wants to increase investment in the category, so this agreement is a perfect fit for both parties. This acquisition will allow us to increase investments in science and product innovation, sustainable krill-harvesting practices and marketing support for our customers, which in turn will build excitement and accelerate growth in the omega 3 market,” Matts Johansen (pictured below), CEO of Aker BioMarine, says. 

Click to Enlarge“Neptune’s customers and products will be integrated into Aker BioMarine, including Neptune’s popular NKO brand. These customers will continue to receive the products they are used to and, at the same time, benefit from the additional products and support Aker BioMarine will offer to drive growth in the omega 3 market.”

“Earlier this year, we kicked off the Omega-3 Index Project to bring more awareness to the health risks of low omega 3 levels. We also initiated a study to evaluate the effects of krill oil omega 3s on the world’s toughest Army recruits, the US Rangers. These are the types of activities we will continue to move forward with, and now in connection with the NKO brand,” explains Johansen.

“The marriage of these two brands is significant for the krill oil business. We have only just scratched the surface of the potential of krill oil and look forward to bringing NKO into our brand portfolio that we spent a decade building,” Johansen adds.

Speaking during an earlier interview with NutritionInsight, Johansen said that Aker BioMarine remains “very focused on innovation; that’s a core part of our strategy. We are the leader in krill-related products: we harvest 60 percent of all the krill in the world and have 60 to 70 percent market share, so if any development’s going to happen within the krill space, it has to happen with us. We have 11 people with PhDs in the company constantly looking for new opportunities, doing research and developing new products.”

Some of the proceeds will be used to reduce debt with high interest rates and the balance will be allocated to innovation projects, such as the Green Valley medical cannabis oil extraction project, and to acquisitions, in line with its growth strategy.

“This transaction marks an important step in Neptune’s next phase of development. Neptune believes strongly in the health benefits that krill oil provides and will remain actively involved in this sector via our investment in Acasti Pharma Inc. and also through finished form soft gel capsules from our Solutions Business,” says Jim Hamilton, President and CEO of Neptune.

Neptune’s Sherbrooke facility is not part of the transaction, and the company is now exploring potential alternatives for its use through the development of unique extractions targeted toward high-potential growth segments. While a small team of people will be retained to continue work on special projects including the medical cannabis project at the facility, a large number of its employees (approximately 50) will see their employment end as part of this transaction.

As for Neptune’s involvement in krill oil, it will continue to offer market-ready finished products, such as its krill oil soft gel capsules, via its Solutions business in partnership with Aker BioMarine. Neptune also remains committed to its investment in Acasti Pharma, which holds strong potential.

“One of the key factors of this transaction for Neptune is that it will benefit from a stronger financial position. Considering high-interest debt reduction and new borrowing capacity to be negotiated, we intend to focus on potential acquisitions and the medical cannabis oil extraction opportunity. The area of focus for potential acquisitions will be specialty ingredients, brands and the Solutions business, which our management team intends to pursue vigorously. We are fully aware that this transaction will affect many of our employees and we would like to thank them for their hard work and dedication,” concludes Jim Hamilton.

Related Articles

Nutrition & Health News

Taking iron supplements every other day may help with absorption

20 Oct 2017 --- A study has found that in iron-depleted women, providing iron supplements daily as divided doses increases serum hepcidin and reduces iron absorption. According to the results, providing iron supplements on alternate days and in single doses optimizes iron absorption and might be a preferable dosing regimen.

Nutrition & Health News

US dietary supplement usage at an all-time high, says CRN survey

20 Oct 2017 --- Supplement usage among US adults is currently at an all-time high, with 76 percent reporting they consume dietary supplements, up five percentage points from last year’s results, according to the latest findings of the 2017 CRN Consumer Survey on Dietary Supplements. 

Nutrition & Health News

Obesity’s many risks may include worsening asthma in children

20 Oct 2017 --- Obesity has been found to be a risk factor for repeated hospital admissions among children in Japan hospitalized for asthma, researchers report in a Pediatric Allergy & Immunology study. Asthma and obesity are common chronic illnesses and public health problems for children in developed countries like Japan. The prevalence of asthma and obesity is increasing, and the study authors note that several studies reported an association between obesity and asthma in children.

Food Ingredients News

Taiyo’s Sunfiber earns Monash University’s Low FODMAP Certification

20 Oct 2017 --- Nutritional ingredient company Taiyo has announced that its premium branded ingredient Sunfiber is the first fiber and first standalone ingredient to become a Monash University Low FODMAP Certified product. Sunfiber, made from guar bean, is also one of the only soluble fiber ingredients approved by the FDA in 2016 to be listed as a dietary fiber.

Nutrition & Health News

Satiety: Mushrooms may trump meat in helping to feel fuller for longer

19 Oct 2017 --- If breakfast is the most important meal of the day, then a new Mushroom Council-funded study suggests mushrooms may be one of the most important ingredients. The study on satiety, published in the October issue of the journal Appetite, indicates that eating a mushroom-rich breakfast may result in less hunger and a greater feeling of fullness after a mushroom breakfast compared to a meat breakfast.

More Articles
URL : http://www.nutritioninsight.com:80/news/aker-biomarine-and-neptune-close-us34m-transaction-to-accelerate-krill-oil-industry.html