Cognis Swoops into Omega-3 Segment

Cognis acquires Norwegian manufacturer of high-quality omega-3 fish oils

Cognis has announced that it will acquire Napro Pharma AS, a Norwegian manufacturer of high-quality omega-3 fish oils for the nutrition industry. The Napro Pharma product portfolio further strengthens Cognis’ Nutrition & Health Strategic Business Unit as a leading supplier of natural-source ingredients sold worldwide for the dietary supplement and functional food markets. The transaction is expected to be completed by end of June, 2006.

Napro Pharma produces omega-3 fish oil concentrates in ethyl ester and triglyceride forms that are highly acclaimed in the industry for their formulation advantages and high potency. Located on the west coast of Norway, the company has seen double-digit growth in recent years as a result of its science-based products and its technological expertise. To meet the soaring demand for omega-3s, the company has expanded its facilities, investing heavily in cutting-edge processes and equipment, such as a new distillation unit installed earlier this year. Its processes for manufacturing, packaging and labeling liquid preparations comply with pharmaceutical GMP guidelines, and the company is also licensed to manufacture marine and vegetable oils in bulk for pharmaceutical use.

“With over 40 years of experience serving the health and nutrition industries, and our global network of scientific, technical, sales and marketing experts, we have the resources in place to further build on Napro Pharma’s outstanding products and services around the world,” says Stephane Baseden, Group Vice President, Cognis Nutrition & Health. “This acquisition enhances Cognis’ ongoing commitment to help our customers lead their markets and meet consumer demands for innovative wellness products.”

Market forecasts indicate a healthy growth rate of about 12 percent for fish oil omega-3s, with concentrates leading the category. Mr. Baseden points out that “Cognis will be working hard to provide customized products and new concepts so our business partners can fully benefit from the growth of the omega-3 market”.

Omega-3s are polyunsaturated fatty acids backed by decades of science showing benefits for overall health, specifically for the heart and brain. The U.S. Food and Drug Administration has issued a qualified health claim for reduced risk of coronary heart disease associated with foods and dietary supplements containing omega-3 fatty acids.

This acquisition gives Cognis entry into a new health platform – brain health. Omega-3s are also an important addition to Cognis’ natural ingredients for the heart health segment, one of the principal areas of focus in the Nutrition & Health business unit. Omega-3s are a perfect complement to Cognis’ Vegapure plant sterols and sterol esters, which have been clinically proven to lower cholesterol. As the world’s largest producer of plant sterol esters, Cognis provides heart health ingredients for a broad range of functional foods and dietary supplements. Other leading wellness ingredients include Tonalin CLA, the number one selling brand of conjugated linoleic acid, clinically shown to reduce body fat and preserve muscle mass. Renowned for its high-quality, natural-source antioxidants including Covitol natural-source vitamin E, Betatene natural beta-carotene and Xangold natural lutein esters, Cognis continues to expand its portfolio of core products as new wellness trends emerge.