Royal DSM (DSM) NA agreed to buy U.S.-based Kensey Nash (KNSY:US) for $360 million in cash to drive expansion in the market for medical devices and materials engineered from proteins and synthetic polymers.
Kensey Nash’s board is recommending the $38.5-a-share offer, which is 33 percent higher than its closing price on May 2, Heerlen, the Netherlands-based DSM said in a statement. The purchase should add to earnings from 2013, it said.
The U.S. biomedical company is DSM’s second major purchase in under two years, extending Chief Executive Officer Feike Sijbesma’s refocus of DSM onto value-added products that are less susceptible to economic swings. Kensey Nash, with margins exceeding 30 percent, adds $90 million to DSM’s sales and will provide a base to expand in biomedical equipment following advances in regenerative medicine and tissue engineering.
“With this acquisition, we are putting DSM Biomedical clearly on the map,” Sijbesma said in the release.
Kensey Nash, a 25-year-old company based in Exton, Pennsylvania, will become part of DSM Biomedical division and help the company meet its goal of 1 billion euros ($1.3 billion) in sales from its so-called emerging business areas.
DSM paid $973 million for health-food ingredients company Martek Biosciences in December, 2010.
Citigroup advised DSM on the deal, with Cleary Gottlieb Steen & Hamilton providing legal counsel. Jefferies advised Kensey Nash, with Katten Muchin Rosenman serving as legal counsel.
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