* DSM offers $38.50 per share in all-cash agreed deal
* Total offer of $360 mln for all shares, share options
* Acquisition will be earnings accretive from 2013
* DSM says has 2-2.5 bln euros for acquisitions
* DSM shares rise as much as 2 pct
By Sara Webb
AMSTERDAM, May 3 Dutch food and chemicals group DSM is buying U.S. medical device-maker Kensey Nash Corp for $360 million to strengthen its biomedical business, leaving it with plenty of cash for more deals.
Kensey Nash's medical devices and biomaterials are used in cardiology, spinal and general surgery. Its best-known product, AngioSeal, is used by doctors to close punctures made in arteries, for example after using a catheter for angioplasty.
DSM has transformed its business over the past couple of years, selling off its lower-margin bulk chemicals businesses to focus on less cyclical food ingredients and high-end plastics.
It has been on the prowl for acquisitions in the more profitable nutrition and life sciences businesses for several months, building up a war chest of about 2-2.5 billion euros. It said on Thursday that it was still looking for new deals.
"As life expectancy continues to increase and people want to remain physically active, growth in the biomedical materials market is expected to remain high," Feike Sijbesma, Chief Executive of DSM, said in a statement.
"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 said the deal would bolster its biomedical business, citing Kensey Nash's leading position in regenerative medicine and biomaterials research and development, and its manufacturing and strong strategic partnerships.
DSM shares rose as much as 2 percent on the news.
"The acquisition fits DSM's strategic growth bill ... Adding flesh on the strategic bone of its bio-medical portfolio," SNS Securities said in a research note, adding: "Growth opportunities are expected to come from Kensey Nash's pipeline in regenerative medicine and tissue engineering."
SNS also said Kensey Nash would contribute both its own business in resorbable collagen, as well as sales openings in the United States for DSM's medical coatings, polymers and drug delivery products.
BONE CEMENT AND SCREWS
Kensey Nash's products include bone cement used to stimulate bone growth and materials used to treat sports injuries.
Its main product, AngioSeal, was subject to a royalty dispute that was settled earlier this year, paving the way for DSM's offer to go ahead.
Kensey Nash said in March that it had reached a settlement agreement with St. Jude Medical Inc and would receive $39 million from St. Jude, payable in 12 quarterly payments starting March 31.
DSM said the acquisition would contribute to earnings per share with effect from next year. Its cash offer of $38.50 per share represents a 33 percent premium to Kensey Nash's closing share price on May 2.
Jefferies & Co said it was financial advisor to Kensey Nash, and that Citigroup was the financial advisor to DSM.
The Dutch company bought U.S. baby food ingredients maker Martek for $1.1 billion in February 2011, and moved into the biofuels market earlier this year announcing a 50-50 joint venture with private U.S. ethanol maker POET, one of the biggest ethanol producers in the world.
That joint venture will produce ethanol on a commercial scale from corn crop residue such as husks and stalks.