) has acquired all the shares of Omega-3 fatty acid maker Epax to
bolster its nutrition and health division and expand in the
high-growth nutraceutical market.
FMC Corp.'s buyout includes Epax's two production facilities -
Epax Nutra Holding III AS in Alesund, Norway, and Epax UK Holding
III AS in Seal Sands, U.K. The deal is valued at roughly $345
million and is expected to be immediately accretive to the
Epax, which was part of Trygg Pharma Group AS, produces high
purity, premium grade Omega-3 EPA/DHA fatty acids that are mainly
used in nutraceuticals, active pharmaceutical ingredient (API)
and food markets. Epax uses proprietary purification and
concentration production techniques to cater to the
As part of the transaction, FMC Corp. has also entered into a
long-term supply agreement with Trygg Pharma to provide it with
high-concentration Omega-3 fish oil for use as an active
Bank of America Merrill Lynch, the corporate and investment
banking division of
Bank of America Corporation
), acted as the sole financial advisor to FMC Corp. for this
The Omega-3 fatty acids market is expected to grow 12 % to 15
% annually and holds a market supply of $2.1 billion per year.
Strong demand for Omega-3 fatty acid concentrated products
developed among buyers due to the increased awareness about the
benefits Omega-3 has on cardiovascular and brain among
The acquisition is a strategic move by FMC Corp. to strengthen
its position in the functional ingredients for the food,
nutraceutical and pharmaceutical markets. This buyout is also a
step forward for FMC Corp. to accomplish its Vision 2015 growth
goals through targeted acquisitions that complement its
technology, business and financial priorities.
Following the announcement, shares of FMC Corp. rose 0.9% to
close at $63.55 on Jul 24.
FMC Corp., which currently carries a Zacks Rank #3 (Hold),
will release its second-quarter 2013 results after the market
closes on Jul 29.
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