Netherlands-based Royal DSM has signed a definitive agreement to purchase regenerative medicines firm Kensey Nash for $38.50 per share, which equates to a total acquisition price of about $360 million. Both firms’ boards have unanimously approved the deal, and DSM will launch a cash tender offer to purchase Kensey Nash shares this month. The offer price per share represents a 33% premium on closing price of the latter’s stock yesterday.
U.S.-based Kensey Nash specializes in the development of collagen and synthetic polymer technologies for regenerative medicine applications, including grafts for soft tissue regeneration, collagen scaffolds, and tailored synthetic polymer materials for use in tissue repair. DSM says the acquisition will strengthen its own biomedical operation, which the firm has tagged as a key emerging business area. More specifically, the addition of Kensey Nash’s technologies and products will boost DSM Biomedical’s existing position in the market for biopassive products such as medical coatings and polymers, and strengthen its entry into the emerging market for bioactive materials including resorbable polymers and drug delivery materials, and biointeractive materials for regenerative medicines and tissue engineering.
Kensey Nash’s existing commercial infrastructure in the U.S. will in addition help leverage DSM Biomedical’s portfolio, while the latter’s customer base in Europe and Asia will provide new growth opportunities for Kensey Nash’s product portfolio. “Biomedical is one of the key areas where DSM is able to fully leverage its unique science-based expertise in life science and materials science,” comments Feike Sijbesma, DSM CEO and management board chairman. “With this acquisition we are putting DSM Biomedical clearly on the map as the second new growth platform for DSM in addition to our biobased products and services business.”
Kensey Nash reported net sales of $16.1 million in its third quarter for fiscal year 2012, ended March 31, up 33% on the prior year’s comparable quarter. The firm’s previously issued guidance projects that net sales for fiscal year 2012 (ending June 30) will reach $90 million and rise to $100 million in fiscal 2013.