Expands and diversifies human nutrition product offerings and broadens global customer reach
Omega Protein, an integrated producer of omega-3 fish oil and speciality protein products, has acquired all of the stock of Bioriginal Food & Science, a leading supplier of plant- and marine-based speciality oils and essential fatty acids to the food and nutraceutical industries across North America, Europe and Asia.
The strategic addition of Bioriginal is a key step towards fulfilling Omega Protein's mission to help people lead healthier lives with better nutrition such as speciality oils, essential fatty acids, speciality proteins and nutraceuticals. The acquisition unites two highly complementary businesses, adding immediate size and scale to the overall business through more diversified human nutrition product offerings and expanding Omega Protein's global customer reach, the company said.
Bioriginal, which generated approximately US$98m in net revenues in the fiscal year ended 31 March 2014, will be operated as a wholly owned subsidiary of Omega Protein. The total purchase price for the acquisition of Bioriginal is expected to be approximately $70.5m, plus $700,000 for estimated working capital adjustments.
'Increased sales of nutritional products for direct human consumption is a key component of Omega Protein's business strategy to diversify our business model and increase growth, while decreasing our exposure to commodity-based earnings volatility,' said Bret Scholtes, Omega Protein's President and Chief Executive Officer. 'We look forward to working with the entire Bioriginal team to grow our company and create a more balanced business portfolio across animal and human nutrition.'
Joe Vidal, Bioriginal's President and Chief Executive Officer, commented: 'Bioriginal has a consistent track record of sourcing ingredients from across the world to formulate unique products for our customers. We are excited to become part of Omega Protein, while maintaining our manufacturing and distribution network. We believe together, Bioriginal and Omega Protein will deepen our relationships with existing customers and broaden our reach to new customers across all of our markets.'