KNSY shares soared 32.2% in pre-market trading on the news, reaching $38.35 – 25.7% above its 52-week high of $30.50 per share, even as the company revealed a 3rd-quarter swing from red ink to black.
Kensey Nash reported profits of $3.0 million, or 34¢ per diluted share, on sales of $22.2 million during the 3 months ended March 31. That compares with losses of 8.0 million, or 94¢ diluted EPS, on sales of $18.6 million – a 19.2% top-line gain.
The DSM buyout, expected to close at the end of the 2nd quarter, is aimed at bolstering DSM Biomedical’s regenerative medicine portfolio. Based in Exton, Pa., Kensey Nash employs about 325 workers and posted profits of $2.9 million, or 34¢ per diluted share, on sales of $18.7 million during fiscal 2011.
"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," DSM chairman & CEO Feike Sijbesma said in prepared remarks. "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."
"This transaction will not only deliver significant value to our stockholders, but it will also be a great event for our strategic partners, customers and employees," added KNSY president & CEO Joe Kaufmann. "The combination of DSM’s unique expertise in materials sciences and our regenerative medicine products and capabilities will allow DSM and Kensey Nash to innovate together and further grow and expand the business."