The acquisition is subject to regulatory approvals and is expected to close in second quarter of 2008. 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.
Steve Hartig, president DSM Biomedical, said: “Through the acquisition of The Polymer Technology Group (PTG) DSM Biomedical gains a leading global position in the fast growing biomedical materials market. Our collective technology in combination with our expanded geographical and customer base will help us to develop a unique portfolio of products for the medical device industry.”