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.

To contact our editorial team please email us at editorial@cnsmedia.com

Aker BioMarine

Collapse

Aker BioMarine is an integrated biotechnology company – uniquely positioned to create value krill derived biotech products. The company is supplying biomarine ingredients through an optimized value chain from raw materials to customer.

Aker BioMarine utilizes its unique krill harvesting to develop its own downstream operations within the high value added nutraceutical and aquaculture feed markets.

Krill derived products, such as oil and meal, have a high content of bioactive ingredients, e.g. Omega-3 bound phospholipids and astaxanthin, which have documented positive effects on both humans and animals.

Aker BioMarine has registered Superba as the company`s brand name for nutraceutical and Qrill as the company’s brand name for its krill meal and krill oil products for aquaculture. Qrill has proven benefits to competing products in the aquaculture market. 

Following the merger with Natural in June 2007, Aker BioMarine has a wide set of capabilities within nutraceuticals (dietary supplements and functional foods) and is an experienced player in nutraceutical applications of lipids, product development, and intellectual property rights (IPR), R&D and product commercialization.

Nutrition & Health Aker BioMarine has registered Superba as the company`s brandnames for its krill oil products for the human market. The Omega-3 phospholipids and astaxanthin found in krill promote among others physical and mental health.

Aker BioMarine has registered Qrill as the company’s brand name for its krill meal and krill oil products for aquaculture feed markets. Business activities have already succeeded in establishing a broad customer base in the market for Qrill meal deliveries to the aquaculture industry.

Related Articles

Packaging & Technology News

Danone's baby food brands undergo image and ingredient revamp

22 Jun 2018 --- Danone Early Life Nutrition has revamped both of its baby food brands, Cow & Gate and Aptamil. Cow & Gate is launching fifteen new food recipes across the pouch, cereal, jar and tray product ranges, as well as a complete packaging re-brand across its entire formula milk and food portfolio. Starting from mid-June, the changes will be the “biggest the brand has ever undergone.” Aptamil is also launching a new patented next-generation powder formulation and a complete packaging refresh across its entire range.

Nutrition & Health News

Weekly Digest: Probiotics reduce bone loss in older women, Optibiotix expands reach in Italy

22 Jun 2018 --- This week in nutrition, Australian Whole Grain Week launched a new diet database in the hope to enhance healthy diets across the country. In research news, UK scientists warn that the normalization of plus-size body shapes may undermine obesity reduction efforts, while probiotics were found to have a significant protective effect for the bones of older women, and further research found that four cups of coffee seemed to protect the heart. Optimum Nutrition and Faber embarked on a campaign to improve American travel snacking habits and Optibiotix and Alfasigma partnered to commercialize Optibiotix's probiotic supplement in Italy. Lastly, this year’s Institute of Food Technologist (IFT18) in Chicago, US, will see NZMP launching a new milk protein ingredient and Lycored delivering some excitement on the floor with “culinary art.”

Nutrition & Health News

Postbiotics & smart toilet paper: Future platforms in digestive health?

21 Jun 2018 --- “Postbiotics” – the metabolic byproducts produced by our gut bacteria – and even smart toilet paper are some of the ideas within digestive health put forward following novel research at King's College London into the function of gut bacteria. Linked to a range of health-related conditions, the gut microbiome has been a topic of growing interest. However, although there is an established list of gut bacteria, their function in the gut has remained reasonably unknown. The researchers have set out to create a database of fecal metabolites – compounds produced by the gut microbiome – in an attempt to shed light on the relationship between what we eat, the way it is processed by our gut microbes and how we accumulate abdominal fat. 

Nutrition & Health News

Plasma Nutrition technology found to significantly boost bioavailability of whey protein

21 Jun 2018 --- A University of South Florida study has found that Plasma Nutrition’s Ingredient Optimized technology can make whey protein more bioavailable than high DH hydrolyzed whey protein. The research was conducted on a double-blinded randomized cohort in a crossover design and compared the effects of 25g of non-hydrolyzed ioProtein whey protein isolate (WPI) to 25g of a high-DH hydrolyzed whey protein. The results show that ioWhey Protein is more bioavailable than hydrolyzed whey protein, demonstrating a 58 percent increase in leucine absorption and 60 percent increase in BCAA absorption.

Nutrition & Health News

More than a flavor: Flavoring substances stimulate immune defenses, study finds

21 Jun 2018 --- Not only do citric acid and spicy 6-gingerol from ginger add special flavors to food and beverages; both substances also stimulate the molecular defenses in human saliva, researchers from the Technical University of Munich (TUM) and the Leibniz-Institute for Food Systems Biology have found. The findings demonstrate the potential of flavor substances to have properties that go beyond the sensory.

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