August 8, 2012

Life sciences and materials sciences company, Royal DSM, has entered into a definitive agreement to acquire Tortuga Companhia Zootécnica Agrária (Tortuga) in an all cash transaction for a total enterprise value of about €465 million (US$574.5 million).

Depending on the actual 2012 EBITDA result, an adjustment in the purchase price up to a maximum enterprise value of about €490 million (US$605.4 million) can be made, based on the same EBITDA-multiple. Subject to customary conditions, the transaction is expected to close in Q1 2013.

Tortuga is the leader in nutritional supplements for ruminant/beef cattle market in Brazil. Its expected 2012 net sales is about €385 million (US$475.6 million), with EBITDA of about €60 million (US$74.1 million).

Tortuga offers revenue synergies for DSM to supply existing vitamins and other products via Tortuga.  The acquisition will strengthen DSM's presence in the significant and highly attractive animal nutrition market in Latin America. It will also extend DSM's current nutritional ingredients range to include organic trace mineral additives which fits into DSM's animal nutrition portfolio for further global expansion.

The acquisition of Tortuga is the seventh acquisition in the Nutrition cluster since DSM announced its corporate strategy DSM in motion: driving focused growth in September 2010. These acquisitions form an integral part of DSM's strategy for its Nutrition cluster and will contribute to the current and future growth of DSM's attractive portfolio in health, nutrition and materials.

Feike Sijbesma, CEO and Chairman of the DSM Managing Board, said: "With the acquisition of Tortuga we have announced €2.2 billion (US$2.7 billion) worth of growth enhancing acquisitions, of which €1.8 billion (US$2.2 billion) in our Nutrition cluster, since we embarked on our current strategic plan less than two years ago."

DSM expects the transaction to be immediately EPS accretive. Customary operational efficiencies will also be realised in the integration process.