Ferrosan takes over Norwegian omega-3 supplier
equity owners revealed their plans for growth earlier this year,
which will allow it to break into the booming omega-3 market.
The company said today that it had agreed to buy 92.5 per cent of the shares in the Norwegian firm NSG that makes the majority of its sales from the Fri Flyt brand of omega-3 supplements.
Ferrosan does not currently have an omega-3 product in its portfolio, despite being the leading supplier of vitamin supplements in several Nordic markets.
CEO Niels de Coninck-Smith agreed that this was an "astonishing" gap. Omega-3 fatty acids have proved one of the strongest growing ingredients in the supplement market in recent years.
The acquisition also gives Ferrosan access to a new business model that derives direct customer sales via subscription.
NSG, or the Nordic Sales Group, based in Vesteralen in northern Norway, has more than 200,000 subscribers in Norway, Sweden and Finland and since its founding in 1997 has quickly built up a flexible and efficient business model.
Since 2001 sales have increased by more than 50 per cent yearly, and NSG now has an annual turnover of approximately NOK200 million (€25.4m).
"Ferrosan is acquiring an exciting and profitable company which canalso provide us with new experience on a number of fronts," added de Coninck-Smith.
"NSG's business is built on direct sales to consumers, on the basis offinely tuned marketing supported by an advanced and efficient ITsystem. The model has proved itself highly effective in Norway,Sweden and Finland. We will further expand its success," he said.
The acquisition is in line with the ambitions revealed earlier this year when Ferrosan underwent a change in ownership. Minority shareholder Novo Nordisk sold its stake in the Danish company making the Nordic private equity group the Altor 2003 Fund its majority stakeholder.
"Altor and Idosan are jointly seeking to grow us via acquisitions," de Coninck-Smith confirmed to NutraIngredients.com.
Ferrosan intends to make an offer to the remaining shareholders in NSG to gain complete control of the business.
