FMC Corp (FMC) announced that they have agreed to buy the Norwegian supplier for Omega 3 fatty acids, Epax. The purchase price was tagged at US$345 million. The acquisition will be added to FMC's existing businesses and will be immediately accretive to the company's earning. FMC bought Epax from Lindsay Goldberg and Aker BioMarine ASA.
The purchase of the Epax highlights the growing focus of FMC on nutrition and health offerings. FMC appointed Mike Smith, the former head of its biopolymers division, to supervise the company's expansion into ingredients for personal care, food and pharmaceutical industries.
With established health benefits, Omega 3 is now a hotspot for merger and acquisitions for chemical and agricultural companies. Companies like FMC are now looking to reduce the volatility in their earnings caused by weather impacts and economic imbalance.
Early this year, BASF SE (BAS), the world's biggest chemical maker, purchased Pronova BioPharma to access the company's high-purity Omega 3 ingredients used in heart drugs similar to GlaxoSmithKline Plc's Lovaza.
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