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DSM-Firmenich has finalised the sale of its MEG-3 fish oil business to KD Pharma Group.

The transaction includes key production facilities located in Piura, Peru, and Mulgrave, Canada, which are crucial for the manufacturing of fish oil products aimed at the food, beverage, dietary supplement and pharmaceutical industries.

The announcement, made today, follows an initial disclosure in July, regarding the intended sale. While the financial specifics of the deal remain undisclosed, DSM-Firmenich has acquired a minority stake of 29% in KD Pharma's parent entity, MidCo Omega, suggesting a strategic partnership that may facilitate future collaboration between the two firms.

This divestiture aligns with DSM-Firmenich's broader strategy to streamline its operations and focus on core areas of innovation in nutrition, health and beauty.

The company operates in nearly 60 countries and reported revenues exceeding €12 billion. It aims to leverage its expertise in vital nutrients and sustainable practices to meet evolving consumer demands.

As the food and beverage industry increasingly prioritises health and wellness, the acquisition of the MEG-3 brand by KD Pharma could enhance its product offerings in the omega-3 market.

KD Pharma, known for its high-quality omega-3 ingredients, stands to benefit from the reputation of MEG-3 while expanding its operational capabilities with the addition of the production facilities.

Industry analysts suggest that this transaction reflects a growing trend where companies are consolidating resources to better compete in a market that is becoming increasingly crowded with health-focused products.

The move may also signal a shift in consumer preferences, as demand for omega-3 fatty acids continues to rise due to their perceived health benefits.

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