HEERLEN, NETHERLANDS--(Marketwire - Aug 8, 2012) -
* DSM (NYSE Euronext: DSM KON) to acquire Tortuga for total enterprise
value of about EUR465 million in cash
* Tortuga expected 2012 net sales: about EUR385 million, with EBITDA of
about EUR60 million
* Tortuga is the leader in nutritional supplements for ruminant/beef
cattle market in Brazil
* Acquisition will strengthen DSM's presence in the significant and
highly attractive animal nutrition market in Latin America
* Tortuga offers excellent revenue synergies for DSM to supply existing
vitamins and other products via Tortuga
* Acquisition extends DSM's current nutritional ingredients range to
include organic trace mineral additives with excellent fit into DSM's
animal nutrition portfolio for further global expansion
* Acquisition consistent with DSM's strategic focus on High Growth
* Value creating acquisition; immediately EPS accretive
Royal DSM, the global Life Sciences and Materials Sciences company,
today that it 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 EUR465 million (BRL 1,160 million).
Depending on the
actual 2012 EBITDA result, an adjustment in the purchase price up to a
enterprise value of about EUR490 million can be made, based on the same
multiple. Subject to customary conditions, the transaction is expected to
in Q1 2013.
Tortuga, a privately held Brazilian company, is a leading company in
supplements with a focus on pasture raised beef and dairy cattle. The
headquartered in Sao Paulo, Brazil with approximately 1,200 employees.
has three production sites in Brazil. Net sales for 2012 are expected at
EUR385 million (BRL 965 million) with an EBITDA of about EUR60 million (BRL
million). DSM has identified attractive revenue and other synergies.
Pasture raised beef and dairy cattle spend a significant part of their life
feeding on natural vegetation, which means they often lack minerals,
nitrogen sources, vitamins and micro nutrients in their diet. Therefore,
nutritional supplements are required to enhance animal performance and
The size of the global market for nutritional supplements for ruminants is
estimated to be well in excess of EUR 4 billion, growing by around 3% per
with significantly stronger growth (7-10%) in organic trace minerals
Tortuga is one of the global leaders in organic trace minerals, despite the
that it has so far been active only in Latin America.
The acquisition of Tortuga allows DSM to capture value from its extended
chain presence with a broad portfolio of nutritional ingredients for animal
nutrition, while leveraging its strong international footprint.
value will be created through revenue synergies by introducing DSM
into Tortuga's products and mixes as well as into its distribution channels
ruminants, and bringing Tortuga's unique products, especially the complete
organic trace minerals portfolio of products, to DSM animal nutrition
worldwide. The acquisition will also strengthen DSM's ability to provide
integrated nutritional solutions, capturing increased value from know-how
animal nutrition advisory services.
The acquisition of Tortuga will broaden DSM's ingredient portfolio to
organic trace minerals and will allow DSM to become a full animal nutrition
solution provider. Tortuga will strengthen DSM's presence in nutritional
supplements and additives for ruminants and is expected to accelerate
growth through leveraging Tortuga's know-how and strong position in
supplements in other ruminants markets in Latin America and around the
DSM can also introduce Tortuga's strong position in organic trace minerals
other market segments worldwide such as nutrition solutions for swine and
The transaction will also strengthen DSM's presence in Brazil, the leading
global beef producer and exporter with an attractive expected growth, and
give DSM additional sales channels in the Brazilian market. The acquisition
also consistent with DSM's strategic focus on High Growth Economies, one of
four growth drivers of DSM's strategy.
DSM expects the transaction to be immediately EPS accretive. Customary
operational efficiencies will also be realized in the integration process.
The acquisition of Tortuga is the seventh acquisition in the Nutrition
since DSM announced its corporate strategy DSM in motion: driving focused
in September 2010. These acquisitions form an integral part of DSM's
for its Nutrition cluster and will contribute to the current and future
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 EUR2.2 billion worth of growth
acquisitions, of which EUR1.8 billion in our Nutrition cluster, since we
on our current strategic plan less than two years ago. After completion of
announced acquisitions DSM's Nutrition cluster will on a pro forma basis
EUR4 billion in net sales on an annual basis, resulting in stronger and
stable growth and profitability for DSM overall. This acquisition fully
DSM's strategy as we continue to create value for all stakeholders by
innovative, sustainable solutions to the world's greatest current and
Leendert Staal, President and CEO of DSM Nutritional Products, commented:
acquisition of Tortuga is a very important milestone for DSM. It will
our position in nutritional supplements and additives for ruminants and our
presence in Brazil, one of the leading ruminant markets in the world.
also broadens our animal nutrition ingredients portfolio with the highly
attractive organic trace minerals, while offering many value creating
I look forward to welcoming the very capable team of Tortuga employees to
Creuza Fabiani, President of Tortuga, commented: "Having been in business
almost 60 years, Tortuga still has huge potential for growth, as well as a
deal to offer the animal proteins production sector. DSM will take on this
challenge, and will continue to build on what has already been achieved to
I chose DSM after careful consideration since their operations in Brazil do
conflict with those of Tortuga, and also because of the great synergy
the two companies, which will provide the entire team at Tortuga with the
opportunity to grow."
Today DSM will hold a conference call for the media from 08.00 AM - 08.30
(+31 (0)10 29 44 228 or +44 (0) 203 365 3207) and a conference call for
investors and analysts from 09.00 AM - 10.00 AM CET (+31 (0)10 29 44 271 or
(0) 203 365 3207). Also, more information can be found in the presentation
can be found on DSM's corporate website.
Tortuga, pioneer in animal nutrition and health, is the largest
mineral supplements for production animals in Brazil and one of the
the world. In addition to Brazil the company sells its products in more
nine countries throughout Latin America, meeting the requirements of
producers working with livestock (beef and dairy), swine, poultry, equine,
and sheep. With more than 58 years of history, Tortuga has
decisively to the advancement of animal production in Brazil introducing
pioneer way new concepts of vitamin and mineral supplements,
technology for organic minerals in animal feed. Tortuga has over 1,200
and approximately 700 sales agents located throughout Brazil.
headquartered in Sao Paulo, has three industrial sites in Brazil
Mairinque (SP), São Vicente (SP) and Pecém (CE).
DSM - Bright Science. Brighter Living.™
Royal DSM is a global science-based company active in health, nutrition and
materials. By connecting its unique competences in Life Sciences and
Sciences DSM is driving economic prosperity, environmental progress and
advances to create sustainable value for all stakeholders. DSM delivers
innovative solutions that nourish, protect and improve performance in
markets such as food and dietary supplements, personal care, feed,
pharmaceuticals, medical devices, automotive, paints, electrical and
electronics, life protection, alternative energy and bio-based materials.
22,000 employees deliver annual net sales of around EUR9 billion. The
listed on NYSE Euronext. More information can be found at www.dsm.com.
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Source: DSM N.V. via Thomson Reuters ONE