DSM To Acquire Fortitech for $634 Million

HERLEEN, The NetherlandsDSM has entered into a definitive agreement to acquire Fortitech, Inc., for $634 million in cash. The transaction, announced at SupplySide West 2012 on Nov. 7, is expected to close before the end of the year.

The acquisition will accelerate DSMs strategy to become a full-solutions provider in food ingredient blends. For DSM the acquisition of Fortitech will expand its value chain presence, while adding additional capabilities to its business.

The acquisition of Fortitech is the ninth acquisition in the Nutrition cluster since it announced its corporate strategy DSM in motion: driving focused growth" in September 2010. This acquisition fully fits DSMs strategy as we continue to create value for all stakeholders by providing innovative, sustainable solutions to the worlds greatest current and future challenges," said Feike Sijbesma, CEO and Chairman of the DSM Managing Board.

Fortitech, a privately held company based in Schenectady, N.Y., is a leader in customized, value-added food ingredient blends for food & beverage, infant nutrition and dietary supplements industries. Fortitech works with a broad range of externally sourced nutrients and food ingredients including vitamins, minerals, nucleotides, amino acids, herb extracts, nutraceuticals, flavors, seasonings, colors, caffeine, proteins, sweeteners, carbohydrates and enzymes. The company has approximately 520 employees, and operates six production sites in New York; California; Campinas, Brazil; Kuala Lumpur; Gastrup, Denmark; and Poznan, Poland; as well as sales offices in China and Mexico.

Commenting on the acquisition, Leendert Staal, president and CEO of DSM Nutritional Products, said: The acquisition of Fortitech is another very important step toward the implementation of DSMs Nutrition strategy. It will help us to expand our value chain presence and to deliver more value to our customers. With Fortitech DSM will be able to deliver customized food ingredient premixes and blends to our customers while at the same time strengthening our international footprint. Fortitech will become an important part of the Human Nutrition and Health business within DSM Nutritional Products. I look forward to welcoming Fortitechs 520 employees to DSM."

Walter S. Borisenok, President and CEO of Fortitech, said: Our combined global capabilities will deliver a deeper and more comprehensive resource for providing our customers with innovative customized products and services. Together we will boast a brighter and stronger scientific research database and unsurpassed technical excellence that will enable us to bring superior value to our products and services."