The deal, which is costing AXA $155m, will see the active ingredients division become a part of its investment portfolio once regulatory approval has been granted.
Currently the active ingredients and specialty chemicals division manufactures around 2,000 products which are supplied to markets and industries all over the world.
Management will stay in place The two companies have confirmed that once the transaction is finalized the division will remain in Quebec City and still be headed up by Charles Boulanger, with the back up of its existing management team.
AXA says that the deal will attract further investment to help the division double in size during the course of the next five years, thanks mainly to organic sales growth and targeted acquisitions.
In turn, the deal will help Canada-based Atrium to finance a change in its focus away from the fine chemicals arena, and mover closer the dietary supplements arena.
The company has expressed that it would also like to expand this part of the business into beauty-based supplements, on top of those targeted at general health.
Company is aiming for global leadership position Ultimately the company wants to position itself as a world leader in this market, primarily focusing on the more developed European and North American markets.
Atrium says that the supplements industry is still relatively fragmented and undeveloped, so it is hoping that the funds from the sale of its active ingredients division will help it fund other acquisitions in this area.
"This transaction will allow us to optimize the creation of shareholder value by focusing exclusively on the health and nutrition industry, where we intend to continue to play the role of strategic consolidator in a conducive industry environment," said Pierre Fitzgibbon, president and CEO of Atrium.