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DSM-Firmenich has announced the sale of its MEG-3 fish oil business to KD Pharma Group, a contract development and manufacturing organisation that is active in pharmaceutical and nutritional lipids.

As part of the transaction, DSM-Firmenich will obtain a minority stake of 29% in KD Pharma's parent company O³ Holding GmbH.

The move comes as DSM-Firmenich aims to focus its lipids activities on its unique algae-based Omega-3 portfolio, while continuing to offer MEG-3 fish oils for the Early Life Nutrition markets as well as MEG-3 powders.

"Following our strategic portfolio review, we decided to de-prioritise certain business segments, including the MEG-3 business," said a DSM-Firmenich spokesperson. "This will allow us to sharpen our focus on our core strengths and deliver even greater value to our customers."

The transaction includes DSM-Firmenich's MEG-3 business for the food and beverage, dietary supplement and Pharma markets, along with the production facilities in Piura, Peru and Mulgrave, Canada.

The MEG-3 business represented approximately €170 million in sales in 2023, with approximately 200 employees who will transfer to KD Pharma.

"We are excited to welcome the MEG-3 business and its talented team to the KD Pharma Group," said a spokesperson for KD Pharma. "This acquisition strengthens our position as a leading CDMO in the pharmaceutical and nutritional lipids space, and we look forward to building on the legacy of the MEG-3 brand."

The transaction is expected to be completed towards the end of 2024, subject to customary regulatory approvals.

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