The KD Pharma Group, a leading CDMO in pharmaceutical and nutritional lipids, has reached an agreement to acquire dsm-firmenich’s marine lipids business in exchange for a minority stake in the enlarged KD company.

The transaction is expected to be completed toward the end of 2024, and is subject to customary regulatory approvals.

The deal includes dsm-firmenich’s Marine Lipids fish oil omega-3 business for the food and beverage, dietary supplement and pharma markets, together with the MEG-3 brand and production facilities in Piura, Peru and Mulgrave, Canada. dsm-firmenich will continue to offer MEG-3 fish oils for the early life nutrition markets as well as MEG-3 powders.

“We are thrilled to welcome dsm-firmenich’s Marine Lipids portfolio into the KD Pharma Group, a move that aligns perfectly with our strategic vision of being technology leaders in lipids and enhancing our ability to innovate and deliver exceptional value to our customers,” said Oscar Groet, CEO of the KD Pharma Group.

The transaction combines the scale of dsm-firmenich’s Piura and Mulgrave sites and the high concentration capability of the KD Pharma Group company, the companies said.

According to KD Pharma, the company will benefit from expansion into a wider range of products and customization opportunities supported by broadened manufacturing capacity.