Epax is the world’s premier high concentrate omega-3 supplement manufacturer, employing 74 people.
Trygg Pharma has agreed to pay NOK 561m for the shares, and will in addition assume the net interest bearing debt of Epax. As of 31 December 2009, Epax’ net interest bearing debt was NOK 314m. Trygg Pharma will receive the result from the operations in Epax from 1 January 2010. The purchase price will carry an interest of 6% pa from 20 September 2010 until completion of the transaction. In 2009, Epax’ revenues were NOK 315m and Ebitda was NOK 90m.
“Epax truly represents the finest of Norway’s fish oil manufacturing traditions,” said Aaron Kramer, who will assume the position as CEO of Trygg Pharma. “The people at Epax have done a tremendous job in developing the company under dedicated Austevoll ownership, and we’re excited to couple our team at Hovdebygda with the exceptional experience and competence in Epax to make further progress in the field of omega-3. We believe that the omega-3 supplement market will continue to have strong global market growth and Epax is very well positioned in the premium quality segment.”
Under its new ownership, Epax will immediately invest significantly in expanding the capacity of the factory in Ålesund, Norway. Trygg Pharma will also strengthen its development and production site in Hovdebygda. Trygg Pharma’s proprietary technology will be deployed to enable manufacturing of the next generation of omega-3 concentrates, thereby realising the synergies between the companies.
As part of the agreement between Trygg Pharma and Austevoll Seafood, Epax has entered into a long-term supply agreement with Austral SA, a subsidiary of Austevoll Seafood. The agreement will secure supply of the highest quality crude fish oil, which is a prerequisite to manufacture Epax’ premium quality omega-3 supplements.
The transaction is subject to customary closing conditions, including receipt of all necessary approvals from relevant competition authorities. Closing is expected to take place in Q4 2010.
Source: Aker BioMarine
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