Neptune Technologies & Bioressources Inc. (Laval, QC, Canada) and Aker BioMarine Antarctic AS (Lysaker, Norway) have announced that they have concluded an agreement whereby Aker BioMarine acquired Neptune’s krill oil inventory and IP for a cash consideration of $34 million (U.S.) paid at closing.
“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,” said Jim Hamilton, president and CEO of Neptune. “The proceeds from this transaction allow Neptune to accelerate its efforts to position the company in attractive growth segments such as cannabis oil extraction, as well as support further acquisitions consistent with our strategy. In the last two fiscal years we have significantly grown revenues and improved the bottom line. We are excited about the opportunities that this transaction will enable for the future and the value creation for our shareholders on a long term basis.”
“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,” added Matts Johansen, CEO of Aker BioMarine. “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. 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.”
Neptune will exit its bulk krill oil manufacturing and distribution activities, and support Aker BioMarine with the transition of its customers, krill oil inventory and intellectual property for a total cash consideration of $34 million (U.S.). 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.