09.01.03
Martek Biosciences Corporation, Columbia, MD, has signed a definitive agreement to acquire certain assets and assume certain liabilities of FermPro Manufacturing, Kingstree, SC. FermPro provides contract fermentation services, which generate revenues of approximately $20 million annually. The company has an experienced workforce of over 100 personnel on a site of over 500 acres with extensive fermentation, recovery, laboratory and warehousing capabilities; FermPro has produced docosahexaenoic acid (DHA) for Martek for the last year. After the asset acquisition is complete, Martek will operate the former FermPro facility as Martek-Kingstree. Martek-Kingstree will gradually replace the plant’s contract fermentation production with production of DHA and arachidonic acid (ARA). The purchase price of the assets being acquired includes a payment of approximately $10 million, comprised of $5 million in cash and 124,788 shares of Martek’s common stock, which represents a discount of approximately 10% to the current market price. A $10 million secured note will also be assumed as part of the transaction. FermPro president and CEO, Barney Easterling, will become a Martek vice president.
In other news, the Commission of the European Communities has authorized the use of Martek’s DHA oil for human consumption. The Commission declared that Martek’s DHA may be marketed in the European Community as a novel food ingredient.
In other news, the Commission of the European Communities has authorized the use of Martek’s DHA oil for human consumption. The Commission declared that Martek’s DHA may be marketed in the European Community as a novel food ingredient.