UPDATE 1-DSM buys Fortitech for $634 million
AMSTERDAM Nov 8 (Reuters) - Dutch vitamins maker DSM is to buy U.S. food ingredients maker Fortitech for $634 million to strengthen its nutrition business.
The deal will give one-time efficiency savings of $70 million, and ongoing savings from 2015 of about 10 percent of net sales, DSM said on Thursday.
The acquisition of privately held Fortitech will bring to 2.8 billion euros the value of acquisitions made by DSM in the past two years, most of which added to its nutrition business, which contributed 76 percent of earnings in the third quarter.
"With Fortitech, DSM will be able to deliver customised food ingredient pre-mixes and blends to our customers while, at the same time, strengthening our international footprint," said Leendert Staal, head of DSM Nutritional Products.
With 520 employees and manufacturing sites in the United States, Denmark, Malaysia and Poland and sales offices in China and Mexico, Fortitech expects net sales of $270 million in 2013.