DSM Acquiring Martek

HEERLEN, NetherlandsRoyal DSM N.V. announced it reached a definitive agreement with Columbia, Md.-based Martek Biosciences Corp. (NASDAQ: MATK) for DSM to acquire all outstanding shares of common stock of Martek for US$31.50 in cash per share for a total consideration of US$1.087 billion (829 million). The boards of both companies have approved and recommended the transaction. The tender offer is expected to commence in mid-January and should close in February, with the transaction expected to close in the first or second quarter of 2011.

Martek is a great company and a leader in the innovation, development, production and sale of high-value products from microbial sources that promote health and wellness through nutrition," said Feike Sijbesma, CEO and chairman of the DSM Managing Board. This acquisition is an attractive and logical next step for DSM. Marteks leading position in healthy, natural ingredients and algal technology will add a new growth platform to our Nutrition business. DSM is a unique partner for Martek and, with our strong track record of growing businesses in competitive environments, we believe we can help to lift Martek to the next level."

DSM and Martek were previously in business, as DSM supplied Martek with the key base material for its arachidonic acid (ARA) product. The acquisition provides a new growth platform for DSM, adding nutritional ingredients for infant formula, food and beverage applications and dietary supplements, particularly related to polyunsaturated fatty acids (PUFAs) including microbial docosahexaenoic acid (DHA) and ARA. Further, DSM has complementary intellectual property (IP) to the broad range of patents and IP held by Martek.

DSM plans to leverage its global infrastructure to accelerate the growth of the Martek products into other regions, applications and market segments beyond the U.S. infant formula and food/beverage markets. In addition to the ingredient synergies, DSM adds the dietary supplement brand Amerifit to its platform, as Martek acquired the business earlier this year.

 We are pleased to announce this transaction, and we believe that it is in the best interest of Martek and our stockholders," said Steve Dubin, Marteks CEO. After careful analysis, our board of directors unanimously approved this transaction with DSM, which has a strong reputation and global operations. We are pleased that this transaction appropriately recognizes the value of Marteks nutritional ingredients, technology platform, market position and skilled workforce, while providing significant value to our stockholders. We have worked collaboratively with DSM for many years, and we are confident that they share our vision for Marteks future."