Holland's DSM to buy Martek Biosciences for $1.087 billion

Dutch chemical and pharmaceutical group Royal DSM NV is to buy US-based nutrition company Martek Biosciences Corp for $1.087 billion (€829 million) in cash, to expand its product portfolio in the infant nutrition, food and beverage and dietary supplement segments.

Maryland, US-based Martek is a leader in innovation, development, production and sale of high-value products from microbial sources that promote health and wellness through nutrition.

Martek, set up in 1985, has grown to become a leader in fermentation technology and an innovator in the research and development of products derived from microalgae. This technology platform has resulted in Martek's development of a number of products, including the company's flagship product, life'sDHA and life'sARA, an omega-6 fatty acid, for use in infant formula and growing-up milks.
 
Martek's subsidiary, Amerifit Brands, develops, markets and distributes branded consumer health and wellness products and holds leading brand positions in all of its key product categories.

For the fiscal year ended October 2010, Martek posted net income of $28 million on revenues of $450 million.

Under the deal, which has been approved by DSM's supervisory board and recommended by Martek's board of directors, Netherlands-based DSM will pay $31.50 in cash per share, a premium of 35 per cent to Martek's closing share price of $23.36 on 20 December 2010.

The acquisition will provide DSM with new opportunities in the infant nutrition, dietary supplements as well as the food and beverages segment while also creating a strong platform for the company to enter the fast growing Omega-3 and Omega-6 market through Martek's microbial DHA and ARA products.