Royal DSM set to aquire functional food specialist Martek in US$1.1bn deal
Heerlen/Columbia – Royal DSM N.V has offered to acquire all outstanding shares of US functional food specialist Martek Biosciences Corp. for US$31.50 per share in cash, a premium of 35% to its price on December 20th. With the deal, worth US$1,087m, DSM will boosting its share in the food supplements and probiotics markets. Martek’s Board of Directors said they will recommend their shareholders to accept the tender. The tender process is expected to close in February 2011, and the transaction is expected to close in Q2/2011 latest.
Martek offers nutrition additives from microbial sources that promote health and wellness. The company’s flagship product, life’s DHA™, (algal docosahexaenoic acid), which promotes brain, heart and eye health, is offered for use in infant formula, in pregnancy and nursing products, foods and beverages, dietary supplements and animal feeds. Martek also produces life’sARA™ (arachidonic acid), an microbial omega-6 fatty acid, for use in infant through nutrition. The strategic acquisition targets the dynamic market between health and nutrition, in which Martek is a leader in the PUFA segement (polyunsaturated fatty acids) in the US. Through the deal, DSM would instantly become a leading player in the world market for microbial PUFAs. It 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.