Date: 2012-05-03
Type of information: Company acquisition
Acquired company: Kensey Nash (USA)
Acquiring company: DSM (The Netherlands)
Amount: $ 360 million (about €275 million)
Terms: Royal DSM has entered into a definitive agreement with Kensey Nash under which DSM would acquire all the outstanding shares of common stock of Kensey Nash through a cash tender offer, followed by a merger with a subsidiary of DSM, for $ 38.50 in cash per share for total enterprise value of approximately$ 360 million.
The transaction has been unanimously approved by both DSM's Supervisory Board and Kensey Nash's Board of Directors. The agreed price represents a premium of 33% to Kensey Nash's closing share price of $ 29.01 on May 2, 2012. Subject to customary conditions, the transaction is expected to close around the end of Q2 2012. The transaction is not subject to a financing condition, and DSM intends to finance the acquisition from existing cash. DSM expects the transaction to be accretive to earnings from 2013 onwards.
Details: Kensey Nash is a US based, technology-driven biomedical company, primarily focused on regenerative medicine utilizing its proprietary collagen and synthetic polymer technology. It manufactures and sells medical device parts in cardiology, orthopedic, sports medicine, spinal and general surgery. The company is headquartered in Exton (Pennsylvania, USA) with approximately 325 employees.
The purchase by DSM of Kensey Nash will strengthen and complement DSM Biomedical's business and capabilities, while clearly meeting DSM's financial and strategic criteria. DSM Biomedical is one of three Emerging Business Areas of DSM. DSM has an aspiration to realize €1 billion in sales by 2020 in its combined Emerging Business Areas and this acquisition puts DSM Biomedical well on track to meet its contribution to this aspiration. With the acquisition of Kensey Nash, DSM Biomedical will be well-established as a profitable growth platform.
For DSM Biomedical the acquisition of Kensey Nash is an important step in realizing its strategic ambition to build strong positions in bio-passive, bio-active and bio-interactive materials. The acquisition will strengthen DSM Biomedical's existing position in the market for bio-passive (medical coatings and polymers) and the emerging market for bio-active (resorbable polymers and drug delivery) materials. It will also provide DSM with a strong position and pipeline of new technologies in the developing field of regenerative medicine and tissue engineering (bio-interactive materials).
Related: biomedical business
biomaterials
regenerative medicine
