Dutch DSM acquires Brazil's Tortuga for €465m

08 August 2012 07:32  [Source: ICIS news]

SINGAPORE (ICIS)--DSM has agreed to buy Brazil-based nutritional supplements firm Tortuga Companhia Zootecnica Agraria (Tortuga) for about €465m ($578m), the Dutch life sciences and material sciences company said on Wednesday.

The transaction is expected to close in the first quarter of next year, the company said in a statement.

“[The] acquisition will strengthen DSM's presence in the significant and highly attractive animal nutrition market in Latin America,” it said.

The deal offers “excellent revenue synergies” for DSM to supply existing vitamins and other products via Tortuga and will extend DSM’s current nutritional ingredients range to include organic trace mineral additives, the firm said.

Tortuga’s net sales for 2012 are expected to total around €385m, with earnings before interest, tax, depreciation and amortisation (EBITDA) of about €60m, according to DSM.

“After completion of the announced acquisitions DSM's nutrition cluster will on a pro forma basis surpass €4bn in net sales on an annual basis, resulting in stronger and more stable growth and profitability for DSM overall,” added Feike Sijbesma, CEO and chairman of the DSM managing board.

($1 = €0.81)

By: Nurluqman Suratman

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