DSM to acquire Kensey Nash to strengthen its biomedical business

Royal DSM, the global Life Sciences and Materials Sciences company, announced that it 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 US$38.50 in cash per share for total enterprise value of approximately US$ 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 US$ 29.01 on May 2, 2012. Subject to customary conditions, the transaction is expected to close around the end of Q2 2012.

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. For Kensey Nash' s fiscal year ending June 30, 2012, Kensey Nash has previously issued guidance for net sales of almost USD 90 million, growing to about USD 100 million in its fiscal year ending June 2013, with EBITDA margins above 30%.

Over 25 years ago Kensey Nash developed what is now the leading arterial closure device in the world using resorbable collagen, synthetic polymer technologies and device engineering expertise. The company has developed a large catalogue of technologies that are used to create high-quality products and devices. Its mechanical device, collagen processing, synthetic polymer, bone mineral, extracellular matrix and other products provide a solid foundation to develop an expansive variety of innovations in regenerative medicine.
 

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. Earlier this year DSM established a joint venture for cellulosic bio-ethanol with POET in its other growth platform, DSM Bio-based Products & Services.

Kensey Nash has strong relationships with an attractive US customer base, which will provide the opportunity to leverage DSM Biomedical’s current portfolio. In addition, DSM’s customer base in Europe and Asia will offer attractive growth opportunities for Kensey Nash’s product portfolio.