DSM begins Martek integration

By Shane Starling

- Last updated on GMT

Martek is now a fullly-owned DSM subsidiary
Martek is now a fullly-owned DSM subsidiary

Related tags Martek biosciences corporation Docosahexaenoic acid

Royal DSM has kicked the integration of its new €800m wholly-owned subsidiary, Martek Biosciences Corporation, into life by establishing a special integration unit to manage the US-Dutch-Swiss deal.

“Planning for the integration of DSM and Martek started when the deal was first announced in December and now a full scale integration of the two businesses will begin,”​ the company said. “A dedicated integration team consisting of both DSM and Martek representatives will work diligently to assess the best way to combine the two organizations.”

DSM is a Dutch company but its Nutritional Products division (created when it purchased Roche Vitamins in 2003) is based in Basel, Switzerland, and so most of the integration work will occur between that site and Martek’s Columbia, Maryland base.

Business continuity

In a statement today announcing the completion of the all-cash acquisition, DSM emphasised that, “business continuity will remain a key priority” ​while affirming its new status as a major omega-3 DHA (docosahexaenoic acid) and omega-6 ARA (arachidonic acid) player.

“It is expected that material synergies will be realized through expanded distribution, marketing and product development as well as other operational efficiencies.”

As a result of the scale and resources that DSM can bring to the already solid businesses of Martek, DSM instantly will become a leading player in the field of microbial PUFAs with the acquisition.”

DSM spelled out its ambition to expand the business of Martek beyond its traditional US base.

“DSM will be able to utilize its global market reach, technology base and application skill capabilities to channel and accelerate the growth of Martek's product portfolio into other regions, applications and market segments beyond Martek's existing strong US-based position in infant formula ingredients and growing position in food and beverage and dietary supplement applications worldwide,”​ the company said.

DSM nodded to the fact that Amerifit – the supplements marketer that specializes in women’s and digestive health products purchased by Martek at the beginning of 2010 for €145m – provided retail scope DSM fully intends to utilise for both Martek and its own offerings.

Amerifit is, it said, “an attractive consumer business for branded dietary supplements with very specific health benefits, 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 robust biotechnology pipeline which complements DSM's own portfolio, is expected to deliver new nutritional and non-nutritional (industrial) growth opportunities in for instance biochemicals and biofuels.”

DSM Managing Board chief executive officer and chairman, Feike Sijbesma, said: "Our attention is now fully focused on ensuring a smooth integration of the Martek business in a timely and efficient manner. Throughout this process, business continuity will remain a key priority for us…”

In announcing a half-billion euro profit last week the €9bn life sciences giant noted an operating cash flow of €1.1bn which put it, “in an excellent position to pursue its strategic growth ambitions.”

Provexis, the UK start-up DSM has been working with on a blood circulation-benefiting tomato extract, announced today that it is in “advance negotiations”​ for Provexis to develop a DSM-owned blood sugar ingredient. More details on that are expected by the end of the week.

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