Martek Biosciences has completed its acquisition of OmegaTech, the producer of DHA fatty acids from algae, following a share-only deal which saw OmegaTech become a fully-owned subsidiary of Martek.
OmegaTech has now changed its name to Martek Biosciences Boulder Corporation, although it will continue to operate from OmegaTech's former headquarters in Boulder, Colorado.
"As we stated at the time of our initial announcement in March, this acquisition is a great opportunity for both companies," said Henry Linsert Jr., chief executive officer of Martek. "The combined intellectual property, technology and experience of the two companies position Martek as a leading provider of DHA for infants, children and adults."
OmegaTech's president and CEO, Mark Braman, added: "The OmegaTech team looks forward to capitalising on the new commercial opportunities that result from this merger."
The purchase price of the acquisition was approximately 1.8 million shares of Martek common stock with a current market value of approximately $50 million (€55.7m). An additional maximum amount of 1.4 million shares having a current market value of approximately $40 million will be payable over the next two years if four milestones are met, Martek said. Two milestones are tied to sales and gross profit margin objectives, and two relate to regulatory and labelling approvals.
Four OmegaTech executives have become Martek officers. Mark Braman has been named executive vice-president of Martek; Dr James Flatt has been named senior vice-president of research and development; Robert Driver has been named vice president of manufacturing; and Robert Di Scipio has been named vice president and associate general counsel of Martek. One OmegaTech director, Robert Flanagan, has joined Martek's board of directors.
Martek Biosciences Corporation develops, manufactures and sells products from microalgae. Its products include speciality nutritional oils for infant formula and nutritional supplements and food ingredients.