DSM Buys Martek for $1.09 Billion

Parsippany, NJ—If accepted by shareholders, DSM will pay $1.087 billion in cash for Martek, maker of life’sDHA and life’sARA ingredients. DSM makes a fish-sourced ingredient, but does not have a vegetarian version (like Martek’s algae platform) that is appropriate for infant nutrition. The firm plans to grow the Martek brands through such products overseas. To date, DSM says it will not be selling off Martek’s Amerifit business.

On the heels of this announcement, the U.S. Securities and Exchange Commission filed a lawsuit in New York City against buyers of Martek Biosciences stock for insider trading. The names of the plaintiffs are unknown as of press time. An anonymous account was used to purchase 2,615 options on Martek stock between Dec. 10 and Dec. 15, well before the acquisition was announced; the stock was sold for $1.2 million on December 21, the day the acquisition was announced.

Published in WholeFoods Magazine, February 2011