Global Life Sciences and Materials company Royal DSM N.V., has signed an agreement to acquire The Polymer Technology Group, Inc. (PTG) of Berkeley (California, USA). The acquisition is subject to regulatory approvals and is expected to close in Q2 2008. With this acquisition, DSM has obtained a leading position in the field of biomedical polymers, one of DSM's future key growth areas. 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.
The acquisition of PTG is an important step for DSM in realizing its ambitions in Biomedical Materials, one of the Emerging Business Areas defined in DSM's Vision 2010 strategy. Being active in both Materials Sciences and Life Sciences, DSM is in a unique position and can combine its abilities in both market segments resulting in new, innovative products that address societal needs in this particular case in healthcare. DSM sees promising potential in the cross-fertilization between Life Sciences and Materials Sciences. With already an established presence and a broad portfolio of products and services for the healthcare industry, DSM aims to establish over € 100 million in sales by 2012 in the Biomedical Materials market of which PTG will contribute a significant part. Founded in 1989, PTG is a market leader in bringing new specialty chemicals and polymer-based solutions to critical, material-intensive applications in the medical field. Some of the many uses for these materials include pacemakers and neural stimulation leads, contact lenses, orthopedic implants, catheters and implantable sensors. PTG's products are widely used by leading medical device companies in both short and long-term devices, several of which have received approval from the US Food and Drug Administration.