DSM Buys Martek for $1.1 Billion

Royal DSM N.V. (DSM; Heerlen, Netherlands) announced today that it is acquiring algal ingredient manufacturer Martek Bioscience Corporation (Martek; Columbia, MD) for the sum of $1087 million.

Martek, a producer of the polyunsaturated fatty acids DHA (docosahexaenoic acid) and ARA (arachidonic acid), is best known for its Life’sDHA ingredient brand.

Martek’s line of polyunsaturated fatty acids (PUFAs) has an established market presence for a variety of health concerns, including infant, visual, and cognitive health. The acquisition makes DSM’s health ingredients branch, DSM Nutritional Products (Parsippany, NJ), an immediate leader in the PUFA category.

In a public statement, DSM stated that the move will allow the company “to channel and accelerate the growth of these products into other regions, applications, and market segments beyond Martek’s current, strong U.S.-based position in infant formula ingredients and growing position in food and beverage and dietary supplement applications.” In fact, DSM intends to create new nutritional and even industrial opportunities with Martek’s ingredients.

In acquiring Martek, DSM also takes control of branded dietary supplement marketer Amerifit (Cromwell, CT), acquired by Martek earlier this year

“This acquisition is an attractive and logical next step for DSM,” said Feike Sijbesma, CEO and chairman of DSM’s managing board. “Martek’s leading position in healthy, natural ingredients and algal technology will add a new growth platform to our nutritio business.”

DSM bought up Martek’s common shares at a 35% premium of $31.50 per share. The transaction is expected to close during the first or second quarter of 2011.