DSM to buy Brazilian animal-nutrition company Tortuga for $575 mn

Dutch chemical and pharmaceutical group Royal DSM NV (DSM) has agreed to buy Brazil's Tortuga for about €465 million ($575 million), in cash, in order to expand its animal-nutrition business in Latin America.

Heerlen, the Netherlands-based DSM said the deal value could increase to €490 million ($606 million) depending on Tortuga's earnings this year.

Sao Paulo-based Tortuga is a privately-held, leading nutritional supplements company with a focus on pasture raised beef and dairy cattle.

It is the world's largest producer of mineral supplements for production animals. The company sells its products in Brazil and more than nine countries throughout Latin America.

It has pioneered the advancement of animal production in Brazil by introducing new concepts of vitamin and mineral supplements, including the technology for organic minerals in animal feed.

It has approximately 1,200 employees, three production sites in Brazil, and expects revenue of €385 million in 2012.

DSM, which today also cut 1,000 jobs worldwide after second quarter net profit plunged by 90 per cent, said the acquisition will allow it to capture value from its extended value chain presence with a broad portfolio of nutritional ingredients in the $4 billion animal nutrition supplements market that is growing by around 3 per cent each year.

The acquisition will also broaden its ingredient portfolio to include organic trace minerals and introduce Tortuga's strong position in organic trace minerals to other market segments such as nutrition solutions for swine and poultry producers.

With a war chest of more than €1 billion, DSM has already made six acquisitions in the nutrition cluster worth €2 billion since September 2010 as part of its strategic plan to focus on high growth economies.