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, United States). Through the acquisition of
privately-held PTG, DSM obtains a leading position in the field of
biomedical polymers, one of DSM's future key growth areas.
 
The acquisition is subject to regulatory approvals and is expected to
close in Q2 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.  
 
In 2008 PTG expects to realize approximately USD 40 million in net
sales with an above average operating profit margin. PTG expects more
than 20% annual sales growth in the next 3-5 years, based on existing
business and the pipeline of new products.
 
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.
 
DSM sees promising potential in the cross-fertilization between Life
Sciences and Materials Sciences. With already an established presence
and a broad portfolio of products and services for the healthcare
industry, DSM aims to establish over ? 100 million in sales by 2012
in the Biomedical Materials market of which PTG will contribute a
significant part.
 
Feike Sijbesma, Chairman of the Managing Board of DSM, commented: "In
our strategy Vision 2010 - Building on Strengths we have highlighted
the many opportunities we see in the cross-fertilization of our
expertise in Life Sciences and Materials Sciences. The biomedical
market is an excellent area to display the benefits of DSM's combined
abilities. The acquisition of PTG is an important step in the
execution of this strategy."
 
Steve Hartig, President DSM Biomedical added: "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."
 
Founded in 1989, PTG is a market leader in bringing new specialty
chemicals and polymer-based solutions to critical, material-intensive
applications in the medical field. Some of the many uses for these
materials include pacemakers and neural stimulation leads, contact
lenses, orthopedic implants, catheters and implantable sensors. PTG's
products are widely used by leading medical device companies in both
short and long-term devices, several of which have received approval
from the US Food and Drug Administration. Its pipeline of new
products is built on a strong, proprietary technology platform
securing future growth of its business and allowing for strong
synergies with DSM's activities in this expanding market. The company
has about 100 employees.
 
Bob Ward, one of the founders of PTG, is widely recognized as an
innovator and eminent scientist in the field of biomedical materials.
As far back as in the 1970's, Ward has driven the development of
novel biomedical products that have significantly benefited mankind.
He will continue in his position as President/CEO of PTG after the
acquisition.
 
DSM Biomedical
To meet the upcoming needs of the medical and biotech industries, DSM
Biomedical builds on the expertise and strengths of DSM in polymers,
coating technology, materials science and life sciences. DSM's
current biomedical portfolio includes ComfortCoat(TM) hydrophilic and
antimicrobial coating technology for catheters, guidewires and stent
delivery systems and Dyneema Purity®, a high performance polyethylene
fiber technology, which has been developed specifically for use in
medical applications, such as orthopedic implants. Furthermore, a
research and development program specifically aimed at extending
DSM's material portfolio for the orthopedic industry has been
started. Moreover, DSM Biomedical is focusing on developing materials
and systems around implantable devices for the musculoskeletal and
vascular systems and drug delivery devices in musculoskeletal,
vascular and ophthalmic application areas.  For more information,
visit www.dsmbiomedical.com.
 
DSM - the Life Sciences and Materials Sciences Company
Royal DSM N.V. creates innovative products and services in Life
Sciences and Materials Sciences that contribute to the quality of
life. DSM's products and services are used globally in a wide range
of markets and applications, supporting a healthier, more sustainable
and more enjoyable way of life. End markets include human and animal
nutrition and health, personal care, pharmaceuticals, automotive,
coatings and paint, electrics and electronics, life protection and
housing. DSM has annual sales of almost EUR 8.8 billion and employs
some 23,000 people worldwide. The company is headquartered in the
Netherlands, with locations on five continents. DSM is listed on
Euronext Amsterdam. More information: www.dsm.com.
 
The Polymer Technology Group (PTG)
PTG was co-founded in 1989 by Bob Ward, a recognized pioneer in the
field of biomaterials. It is vertically-integrated, in research,
development, design, scale-up, and manufacture of new polymers,
components and medical devices. PTG's materials portfolio includes
some of the world's most extensively tested biomaterials in clinical
use today: BioSpan® segmented polyurethane, Bionate® polycarbonate
urethane and CarboSil® silicone polycarbonate urethane. PTG recently
expanded operations to 70,000-square-feet comprise the equipment and
expertise to support production-scale polymer synthesis through
contract medical device manufacturing. More information:
www.polymertech.com
 
For more information: 

DSM Corporate Communications               DSM Investor Relations
Elvira Luykx                               Hans Vossen
tel. +31 (0) 45                            tel. +31 (0) 45 5782864
5782035                                    fax +31 (0) 45 5782595
fax +31 (0) 45                             e-mail
5740680                                    investor.relations@dsm.com
e-mail media.relations@dsm.com    

 


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