DSM acquires PTG, expands biomedical materials business
Dated: 5/5/2008
Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, has announced an agreement to acquire The Polymer Technology Group, Inc. (PTG) of Berkeley (California, US).
Through the acquisition of privately-held PTG, DSM obtains a leading 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 $40 million in net sales with an above average operating profit margin.
PTG expects more than 20% annual sales growth in the next three to five years, based on existing business and the pipeline of new products.
With already an established presence and a broad portfolio of products and services for the healthcare industry, DSM aims to establish over €100 million ($155.69 million) in sales by 2012 in the biomedical materials market of which PTG will contribute a significant part.
