DSM acquire Fortitech $634 million

DSM to acquire Fortitech for $634 million

9:18 AM, 8th November 2012
DSM to acquire Fortitech for $634 million

HEERLEN, THE NETHERLAND: Royal DSM has entered into a definitive agreement to acquire Fortitech Inc, a privately held company for food ingredient blends for food & beverage, in an all cash transaction for a total enterprise value of $634 million (about €495 million). The transaction is expected to close before the end of the year.

The acquisition of Fortitech will accelerate DSM’s 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.

With the acquisition of Fortitech DSM now has announced over €2.8 billion worth of growth enhancing acquisitions in just over two years, of which €2.4 billion in its Nutrition cluster. After completion of the announced acquisitions DSM’s Nutrition cluster will on a pro forma basis realize €4.6 billion in net sales with an EBITDA-margin target in the range of 20-23 per cent on an annual basis, resulting in stronger and more stable growth and profitability for DSM overall. These acquisitions form an integral part of DSM’s strategy for its Nutrition cluster and will contribute to the current and future growth of DSM’s attractive portfolio in health, nutrition and materials.

“The acquisition of Fortitech is another very important step towards the implementation of DSM’s 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,” said Leendert Staal, President and CEO, Nutritional Products, DSM.

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