Royal DSM NV is buying privately held biomaterials developer Polymer Technology Group Inc. of Berkeley, Calif.
The deal gives DSM ``a leading position in the field of biomedical polymers, one of DSM's future key growth areas,'' according to an April 28 news release from Heerlen-based DSM.
The Dutch firm said it expects to complete the acquisition, subject to regulatory approvals, in the second quarter. DSM said it is paying about 10 times PTG's earnings before interest, taxes, debt and amortization, but the companies did not reveal the purchase price.
PTG expects to generate $40 million in sales in 2008, with an ``above average'' operating profit margin, according to DSM. PTG also expects annual sales growth of more than 20 percent in the next three to five years, based on existing business and new products coming forward, the release said.
The acquisition of PTG - which makes materials used in contact lenses, orthopedic implants and catheters - will move DSM toward realizing its ambitions in biomedical materials, one of its emerging businesses. DSM has plans to reach 100 million euros ($157 million) in sales in biomedical materials by 2012.
PTG has three facilities with total space of about 55,000 square feet. It employs about 100.