DSM acquires PTG to expand its fast growing biomedical materials business

Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, today announces an agreement to acquire The Polymer Technology Group, Inc. (PTG) of Berkeley (California, the US).

Steve Hartig, President DSM Biomedical said: "Through the acquisition of 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.”

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.

The acquisition is subject to regulatory approvals and is expected to close in the 2nd quarter of 2008. The transaction price (including the earn-out) will be about 10 times EBITDA. Other details have not been disclosed.

In 2008, PTG expects to realize approximately USD 40 million in net sales with an above average operating profit margin. PTG expects that they will see the annual sales growth of more than 20% in the next three to five years, which is based on existing business and the pipeline of new products.