The transaction is expected to provide DSM with new opportunities in the infant nutrition segment as well as food and beverage and dietary supplements.
It will also provide with a platform for DSM to foray into the growing Omega-3 and Omega-6 market through Martek’s microbial DHA and ARA products.
DSM will be able to leverage its global nutritional infrastructure to channel and accelerate the growth of these products into other regions, applications and market segments beyond Martek’s current US-based position in infant formula ingredients and growing position in food and beverage and dietary supplement applications.
DSM and Martek already have a longstanding relationship as DSM supplies Martek with the key base material for its ARA product.
DSM has complementary intellectual property to the broad range of patents and intellectual property Martek owns, which will further extend the competitiveness of the combined company’s proprietary products.
DSM will also benefit from Martek’s recent acquisition of Amerifit, a consumer business for branded dietary supplements, which it will be able to use as an additional marketing channel for both Martek as well as DSM ingredients.
Furthermore, Martek’s algal and other microbial-based biotechnology platform and its algal technology pipeline which complements DSM’s own biotechnology portfolio, is expected to deliver new nutritional and non-nutritional (industrial) growth opportunities.
The transaction is expected to close in the first or second quarter of 2011.