DSM acquires PTG to expand its fast growing biomedical materials business

30-Apr-2008

Royal DSM N.V. announced an agreement to acquire The Polymer Technology Group, Inc. (PTG) of Berkeley (California, United States). Through the acquisition of privately-held PTG, DSM oimproves its position in the field of biomedical polymers, one of DSM's future key growth areas.

The acquisition is subject to regulatory approvals and is expected to close in Q2 2008. The acquisition price, which will not be disclosed as agreed between the parties, consists of a payment at closing and an earn-out. The earn-out will be due in the event that certain sales and profit growth targets are realized. The transaction price (including the earn-out) will be about 10 times EBITDA.

In 2008 PTG expects to realize approximately USD 40 million in net sales with an above average operating profit margin. PTG expects more than 20% annual sales growth in the next 3-5 years, based on existing business and the pipeline of new products.

The acquisition of PTG is an important step for DSM in realizing its ambitions in Biomedical Materials, one of the Emerging Business Areas defined in DSM's Vision 2010 strategy. Being active in both Materials Sciences and Life Sciences, DSM is in a unique position and can combine its abilities in both market segments resulting in new, innovative products that address societal needs in this particular case in healthcare.

DSM sees promising potential in the cross-fertilization between Life Sciences and Materials Sciences. With already an established presence and a broad portfolio of products and services for the healthcare industry, DSM aims to establish over EUR 100 million in sales by 2012 in the Biomedical Materials market of which PTG will contribute a significant part.

https://www.bionity.com/en/news/81526/dsm-acquires-ptg-to-expand-its-fast-growing-biomedical-materials-business.html