DSM closes $360M deal for Kensey Nash

Members of the boards of DSM and Kensey Nash held a signing ceremony in May--courtesy of DSM

After a protracted process full of shareholder unrest, Royal DSM ($DSM) has finalized its acquisition of devicemaker Kensey Nash, a move the company says will strengthen its biomedical wing.

The final $360 million price tag--about $38.50 per share--had drawn ire from some Kensey Nash shareholders, with a New York law firm looking into claims that the Kensey board breached its fiduciary duty and one shareholder unsuccessfully suing to halt the deal and hold out for more money.

In the end, however, DSM has come out on top, acquiring the regenerative medicine-focused device company and saying that Kensey's client base--which includes Stryker ($SYK) and St. Jude Medical ($STJ)--will provide a big boost to DSM's bottom line. The company is targeting €1 billion ($1.25 billion) in sales by 2020, and this acquisition is a key component of that goal, DSM said.

And the Dutch firm has reason for its optimism. In its most recent disclosure, Kensey Nash reported Q3 revenues of $22.2 million, up 19% from the previous year, and a net annual sales jump of 33%. Furthermore, the company's settlement with St. Jude over Angio-Seal guarantees it $39 million in royalties over the next year. Kensey Nash has projected 2012 revenues of $89.1 million.

- read DSM's release

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