Click here for more information about Algenuity
Click here for more information about LiqofluxPhenometrics Buy 3 Get 1 Free
Visit cricatalyst.com!Evodos Separation Technology

Money

Algae Producer Martek to be Acquired by DSM

December 23, 2010
AlgaeIndustryMagazine.com

Royal DSM N.V., the global Life Sciences and Materials Sciences company, and Martek Biosciences Corporation have announced that they have entered into a definitive agreement under which DSM will acquire all the outstanding shares of common stock of Martek for US$31.50 in cash per share for total consideration of US$1.087 Billion. The transaction has been approved by DSM’s Supervisory Board and is recommended by Martek’s Board of Directors. Subject to customary conditions, the tender process is expected to close in February 2011, and the transaction is expected to close in the first or second quarter of 2011.

The agreed price represents a premium of 35% to Martek’s closing share price of US$23.36 on December 20, 2010, and 39% to the volume weighted average closing price of Martek’s common stock over the last 90 days.

The acquisition is structured as an all-cash tender offer for all the outstanding shares of Martek common stock, to be followed by a merger in which each remaining share of Martek common stock would be converted into the same cash per share price paid in the tender offer. The tender offer is expected to commence between 10 January 2011 and 25 January 2011. The Martek Board of Directors has recommended that Martek stockholders accept the offer and tender their shares into the offer when it is made. The acquisition is subject to the satisfaction of customary conditions, including the tender of a majority of the outstanding shares of Martek common stock on a fully-diluted basis and the expiration or earlier termination of the Hart-Scott-Rodino antitrust waiting period and other regulatory approvals. The tender process is expected to close in February 2011, and the transaction is expected to close in 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 purchase by DSM of Martek, a U.S. based producer of high value products from microbial sources that promote health and wellness through nutrition, will be the first major acquisition by DSM after its successful transformation into a Life Sciences and Materials Sciences company. This transaction is in line with DSM’s strategy for its Nutrition cluster “continued value growth” and adds a new growth platform for healthy and natural food ingredients for infant formula and other food and beverage applications, especially focused on Polyunsaturated Fatty Acids (PUFAs) such as microbial Omega-3 DHA (docosahexaenoic acid) and Omega-6 ARA (arachidonic acid).

PUFAs have been clinically proven to have a positive impact on human health and Martek is a leader in this field. Martek therefore represents an attractive strategic acquisition for DSM. It will provide DSM with new opportunities in the infant nutrition segment as well as food and beverage and dietary supplements and create a strong platform for DSM to enter the fast growing Omega-3 and Omega-6 market through Martek’s microbial DHA and ARA products.

DSM will be able to leverage DSM’s global nutritional infrastructure (global market reach, application skills, R&D and manufacturing technology base) to channel and accelerate the growth of these products into other regions, applications and market segments beyond Martek’s current strong US-based position in infant formula ingredients and growing position in food and beverage and dietary supplement applications.

As a result of the scale and resources that DSM can bring to the already solid businesses of Martek, DSM instantly becomes a leading player in the field of microbial PUFAs and through this attractive growth segment expects to drive compelling financial performance for its shareholders. The acquisition is immediately EPS accretive for DSM by 15 to 20 euro cents per ordinary share on a full year basis.

The two companies already have a longstanding relationship as DSM supplies Martek with the key base material for its ARA product. DSM has complementary intellectual property to the broad range of patents and intellectual property Martek owns, which will further extend the competitiveness of the combined company’s proprietary products.

DSM will also benefit from Martek’s recent acquisition of Amerifit, an attractive consumer business for branded dietary supplements with very specific health benefits, which it will be able to use as an additional marketing channel for both Martek as well as DSM ingredients.

Furthermore, Martek’s algal and other microbial-based biotechnology platform and its robust algal technology pipeline which complements DSM’s own biotechnology portfolio, is expected to deliver new nutritional and non-nutritional (industrial) growth opportunities.

The acquisition is expected to realize material revenue synergies through expanded distribution, marketing and product development as well as other operational efficiencies, and will accelerate DSM’s revenue growth.

Martek is headquartered in Columbia Maryland USA and had annual net sales of US$450 million for its fiscal year which ended October 31, 2010. Martek has five principal locations and some 600 employees.

More Like This…

Copyright ©2010-2020 AlgaeIndustryMagazine.com. All rights reserved. Permission required to reprint this article in its entirety. Must include copyright statement and live hyperlinks. Contact editorial@algaeindustrymagazine.com. A.I.M. accepts unsolicited manuscripts for consideration, and takes no responsibility for the validity of claims made in submitted editorial.

twittertopbarlinks_eventstopbarlinks_requesttopbarlinks_archives

From The A.I.M. Archives

— Refresh Page for More Choices
Researchers at Los Alamos National Laboratory and partner institutions have provided the first published report of algae using raw plants as a carbon energy source. The r...
San Diego, CA and Kailua-Kona, HI-based Cellana, Inc. has signed an Asset Purchase Agreement with Cyanotech Corporation for the sale of Cellana’s six-acre production and ...
42 Technology has been appointed by LabXero, acoustic particle filtration technology company, to help develop pilot-scale biomanufacturing equipment that could significan...
When there is a combination of population increase, wastewater discharge, agricultural fertilization, and climate change, the cocktail is detrimental to humans and animal...
Algae and corals have been leaning on each other since dinosaurs roamed the earth, much longer than had been previously thought, according to new research led by scientis...
John Cumbers and Kevin Costa report for Forbes that Berkeley-based biotech startup Checkerspot has announced a partnership with Gore — the makers of Gore-Tex — to use syn...
Alexander Richter writes in thinkgeoenergy.com that Israel-based Algaennovation last week signed a 15-year contract with Icelandic energy utility and operator ON Power fo...
The problem of access to safe drinking water in most parts of Bangladesh is a persistent challenge. Now, a team of scientists from Uppsala University, Sweden, and Dhaka U...
How did plants make the evolutionary jump from water to land? Scientists think that green algae are their water-living ancestors, but we are not sure how the transition t...
Milenio.com reports that BiomiTech, a Mexican company, won a prestigious innovation award for its air purification system at the Contamination Expo Series 2018 held in Bi...
The Utah Science Technology and Research (USTAR) initiative, a technology-based economic development program funded by the state of Utah, has awarded a $175,320 grant for...
JapanNews.com reports that Euglena Co., a Tokyo-based maker of nutritional supplements, is spending ¥5.8 billion ($5.3 million USD) on building a test refinery that conve...