Holland's DSM to acquire US-based Martek

21st December 2010, Comments 0 comments

Dutch chemical and pharmaceutical group DSM is to acquire US-based Martek Biosciences Corporation for 1.087 billion dollars (about 829 million euros), the two companies announced on Tuesday.

DSM and Martek "have entered into a definitive agreement under which DSM will acquire all the outstanding shares of common stock of Martek for 31.50 dollars in cash per share", a joint statement said.

"The transaction has been approved by DSM's supervisory board and is recommended by Martek's board of directors."

The agreed price represented a premium of 35 percent to Martek's closing share price of 23.36 dollars on December 20, 2010, and 39 percent to the volume weighted average closing price of Martek's common stock over the last 90 days. The tender offer was expected to commence between January 10 and 25 next year and close in February, the statement said. The transaction should be completed by the first or second quarter of 2011.

"The transaction is not subject to a financing condition, and DSM intends to finance the acquisition from existing cash," the statement said.

DSM manufactures chemicals used in nutrition, health care products, paint, electronics and housing. It has annual net sales of about eight billion dollars and employs about 22,700 people worldwide.

The US-based Martek, which produces nutritional supplements, had annual net sales of 450 million dollars in the year ended October 2010, and has about 525 employees.

Taking over Martek would position DSM as a leader in polyunsaturated fatty acids and infant nutrition, the statement said.

DSM's shares gained 3.5 percent in value to 42.46 euros shortly after opening on the Amsterdam stock exchange.

© 2010 AFP

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