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Cooke to purchase Omega Protein
Posted on Monday, 09 October 2017 07:22
Cooke is acquiring food supplements manufacturer Omega Protein for USD 494.22 million in cash to diversify its business.
The offer price of USD 22.00 per share represents a 32.5 per cent premium over the New York Stock Exchange-listed group’s close on 5th October 2017, the last trading day prior to the deal being announced.
While the boards at both companies have given the green light, the offer remains subject to approvals from shareholders and regulators, including the US Maritime Administration, the Department of Justice and the Federal Trade Commission.
Cooke has obtained debt financing from DNB Capital and BMO Capital Markets to fund the acquisition.
The deal is expected to close towards the end of this year or early 2018.
Based in Houston, Texas, Omega Protein develops and manufactures protein, fish oil and essential fatty acids dietary supplements.
It also produces fish-oil based animal feed formulations for pets and livestock.
With around 1,100 employees, Omega Protein operates more than 30 vessels for its fish harvests and seven manufacturing plants in the US, Canada and Europe.
The public group posted revenue of USD 167.49 million in the six months ended 30th June 2017, down 15.2 per cent on the USD 197.49 million recorded during the same timeframe in the previous year.
Net profit for the period totalled USD 13.44 million, compared to USD 14.04 million in H1 2016.
Cooke currently operates salmon farms in Canada, the US, Chile and Scotland, as well as seabass and seabream fishery operations in Spain.
According to Zephyr, the M&A database published by Bureau van Dijk, globally, there have been 221 deals targeting medicinal and botanical products manufacturers announced since the beginning of this year.
The largest of these was Ashland’s USD 660.00 million acquisition of Pharmachem Laboratories, which closed in May.
© Zephus Ltd