Borregaard sells omega-3 business to fellow Norwegians

Related tags Cod liver oil

Borregaard sells omega-3 business to fellow Norwegians
Norwegian biochemical company Borregaard has sold its Denomega omega-3 ingredient supply business as it restructures ahead of a potential sale or IPO (initial public offering).

Orkla Brands-owned Axellus, a supplement maker that already has lines in omega-3, will take control of Denomega Pure Health this month.

“We have now found a solution with Axellus which means that Denomega has become part of an environment and group that already has omega-3 oils and supplements. We believe that this is a good solution for Denomega providing a foundation for future growth for both parties,”​ said Borregaard CEO, Per A Sørlie.

Denomega’s last significant move was to launch an encapsulation grade Cod Liver Oil it said was ‘virtually tasteless’ and derived from hand-sorted livers of Norwegian cod.

That supply will boost Axellus’s operations all through the Nordic region, the Baltics and eastern Europe, CEO, Stig Ebert Nilssen, said.

“This acquisition will strengthen our Norwegian supply chain. By consolidating omega-3 expertise, we will generate exciting opportunities for innovation, both within our own omega-3 brands and for our international customers,”​ said Nilssen.

Axellus brands – valued at around €160m – include Möller’s, Gerimax, Pikasol, Nutrilett and Maxim that sell in the health food channel as well as supermarkets and pharmacies.

Denomega said the companies sales, marketing and production expertise in food supplements would deliver “greater value” ​for Denomega customers.

In its 2011 financial statement Orkla Brands stated that, Axellus, the Chips Group and Orkla Brands Russia reported good improvement in the fourth quarter of 2011.”

In the same statement, Orkla Brands president and CEO Bjørn M. Wiggen said : "Despite demanding markets, it is gratifying to see that Orkla Brands is maintaining its strong market positions in the Nordic region, despite having raised prices to compensate for higher raw material costs. We are also pleased that the measures implemented in Russia are now producing results.

Denomega is one of the largest fish oil suppliers for omega-3 oils for human use in the world.

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