logo
Share SHARE
FONT-SIZE Plus   Neg

DSM To Buy US-based Kensey Nash For $360 Mln

Dutch life sciences firm Royal DSM NV (RDSMY.PK) has agreed to acquire medical device maker Kensey Nash Corp. (KNSY), paying a 33 percent premium to the U.S. firm's last traded price per share. DSM said Thursday it will pay $38.50 in cash per share, giving Kensey Nash an enterprise value of around $360 million.

Through the acquisition, DSM intends to strengthen its biomedical business, and anticipates the deal to be accretive to its earnings from 2013 onwards. The transaction has been unanimously approved by both DSM's supervisory board and Kensey Nash's board of directors.

As per the terms of the deal, the acquisition will be made through a cash tender offer, followed by a merger with a unit of DSM. The tender offer is expected to begin in May.

The agreed price represents a premium of 33 percent to Kensey Nash's closing share price of $29.01 on May 2, 2012. The transaction may be complete around the end of second quarter of 2012.

Pennsylvania-headquartered Kensey Nash makes medical devices for use in cardiology, orthopedic, sports medicine, spinal and general surgery. The company employs about 325 people. For its fiscal year ending June 30, 2012, Kensey Nash expects net sales of around $90 million, with an increase to about $100 million in fiscal 2013.

The transaction is not subject to a financing condition, and DSM plans to finance the acquisition from existing cash.

Feike Sijbesma, CEO and chairman of the DSM Managing Board said, "With this acquisition, we are putting DSM Biomedical clearly on the map as the second new growth platform for DSM in addition to our Bio-based Products & Services business as we continue to create value for all stakeholders by providing innovative, sustainable solutions to the world's greatest challenges."

Separately, Kensey Nash reported a third-quarter net income of $2.95 million or $0.34 per share, compared to net loss of $8.05 million or $0.94 per share last year.

Total revenues for the quarter grew 19 percent to $22.16 million from $18.59 million in the prior year. Royalty income declined 6 percent to $6.1 million.

On average, four analysts polled by Thomson Reuters expected the company to earn $0.35 per share on revenues of $22 million for the quarter. Analysts' estimates typically exclude special items.

In Amsterdam, DSM shares are currently trading at 44.51 euros, up 1.54 percent. Kensey Nash ended on Wednesday at $29.01 on the Nasdaq.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
American Express did not violate antitrust laws and can prohibit merchants from steering customers to credit cards with lower transaction fees, a federal appeals court ruled Monday. This ruling reverses an earlier trial court's judgment against the company and directs that court to enter judgment in favor of American Express. General Motors (GM) luxury brand is offering 400 dealers as it reshapes the brand's image to better compete with rivals, according to media reports. The Detroit auto maker will provide as much as $180,000 in "transition assistance" to U.S. Cadillac dealers unwilling to invest in a set of new standards... Hotwire of Expedia Inc. cautioned customers about a fake fax memo. The memo, offering deep travel discounts, has an old corporate Hotwire logo in it to falsely imply a connection with Hotwire. It carries phone numbers which are not related to travel booking site.
comments powered by Disqus
Follow RTT