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DSM to Acquire Kensey Nash

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It was revealed on Thursday that Royal DSM (NYSE: DSM), the global life sciences and materials sciences company, will offer $38.50 per share to purchase Kensey Nash (NASDAQ: KNSY), the technology-driven biomedical company in an all-cash offer.

The deal looks like it will go through without a hitch as of now, as the Kensey board has already unanimously recommended the offer. With that in mind, one would have to wonder what would stand in DSM's way now.

It is thought that the acquisition of KNSY will strengthen DSM's biomedical capabilities, as area that has needed some bulking up for some time.

DSM CEO Feike Sijbesma said of the deal, "As life expectancy continues to increase and people want to remain physically active, growth in the biomedical materials market is expected to remain high. Biomedical is one of the key areas where DSM is able to fully leverage its unique science-based expertise in Life Sciences and Materials Sciences. With this acquisition, we are putting DSM Biomedical clearly on the map as the second new growth platform for DSM in addition to our Bio-based Products & Services business as we continue to create value for all stakeholders by providing innovative, sustainable solutions to the world's greatest challenges."

It certainly looks like a smart move, as KNSY already has a strong domestic customer base. Te deal will also provide DSM the opportunity to strengthen in the bio-passive market, as well as the emerging market for bio-active materials.

Follow me @BCallwood.

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