Martek Biosciences Announces Agreement to Sell Majority of Winchester, Ky. Manufacturing Site
Thursday, September 23, 2021 4:07 PM

Related Stories



COLUMBIA, Md., Sept. 23 /PRNewswire-FirstCall/ -- Martek Biosciences Corporation (Nasdaq: MATK) announced today that it has entered into an agreement to sell a significant portion of the assets at its Winchester, Ky., manufacturing site to Alltech, an animal health company headquartered in Nicholasville, Ky. The assets to be sold include a majority of the land and buildings at the Winchester site as well as certain equipment therein, including all of the production-scale fermentation and recovery equipment. The transaction does not include the sale of, license of, or granting of any rights to any of Martek's strains, patents or any other technologies. It also does not permit the use of the Winchester assets to produce omega-3 and/or omega-6 polyunsaturated fatty acids for human use for a period of 10 years. The sale is consistent with Martek's previously announced plans to restructure its Winchester, Ky., manufacturing facilities in an effort to streamline operations, improve capacity utilization, and reduce manufacturing costs and operating expenses.  Under the terms of the sale agreement, Alltech will pay Martek a total of approximately $14 million over the next four years for the assets to be acquired. The transaction is expected to close by November 30, 2010, subject to customary closing conditions.

Also as previously disclosed, as a result of the Winchester plant restructuring and sale, Martek will incur both non-cash asset impairment and cash charges. Based on the terms of the sale, we currently project that non-cash charges of approximately $28-32 million will be recorded in the fourth quarter of fiscal year 2010 as well as cash charges of approximately $1 million related to employee separation costs.  

Following the sale and restructuring, Martek plans to continue to maintain a strong presence in Winchester, with approximately 50 skilled employees focused primarily on lab and pilot scale development, limited production, and supply-chain management.  In addition, Martek will maintain necessary production redundancies through continuing access to certain key processes at the Winchester facility and arrangements with contract manufacturers.  

"The restructuring of our manufacturing operations and this related asset sale is a necessary part of our strategy to significantly offset price reductions resulting from our infant formula contract extensions through the implementation of manufacturing cost savings, product innovation initiatives, and growing our non-infant formula business. Importantly, Martek will continue to have access to back-up production facilities, if needed. This transaction will also enable Martek to maintain a considerable presence in Winchester where we will carry-out a variety of critical innovation, development, and other activities," said Steve Dubin, CEO of Martek Biosciences Corporation.

About Martek Biosciences Corporation

Martek Biosciences Corporation (NASDAQ: MATK) is a leader in the innovation, development, production and sales of high-value products from microbial sources that promote health and wellness through nutrition. The company's technology platform consists of its core expertise, broad experience and proprietary technology in areas such as microbial biology, algal genomics, fermentation and oil processing. This technology platform has resulted in Martek's development of a number of products including the company's flagship product, life'sDHA™ a sustainable and vegetarian source of algal DHA (docosahexaenoic acid) important for brain, heart and eye health throughout life for use in infant formula, pregnancy and nursing products, foods and beverages and dietary supplements. The company also produces life'sARA™ (arachidonic acid), an omega-6 fatty acid, for use in infant formula and growing-up milks. Martek's subsidiary, Amerifit Brands, develops, markets and distributes branded consumer health and wellness products and holds leading brand positions in all of its key product categories. Amerifit products are sold in most major mass, club, drug, grocery and specialty stores and include: Culturelle®, a leading probiotic supplement; AZO, the leading OTC brand addressing symptom relief, detection and prevention of urinary tract infections; and ESTROVEN®, the leading all-natural nutritional supplement brand addressing the symptoms of menopause. Martek currently has a number of nutritional health and wellness products under development that it plans to commercialize and distribute through Amerifit's distribution channels.

Martek's technology platform has also made it a sought-after partner on a range of groundbreaking projects in process, including the development of microbially-derived biofuels and the development of DHA-containing oilseeds. For more information on Martek Biosciences, visit http://www.martek.com/. For a complete list of life'sDHA and life'sARA products, visit http://www.lifesdha.com/. For more information about Amerifit Brands, visit www.amerifit.com.

Safe Harbor Statement

Sections of this release contain forward-looking statements. These statements, including statements about (i) Martek's planned restructuring initiatives in Winchester, Ky., and its plans with respect to future activities at that site, (ii) expected future production and economic benefits of the restructuring, (iii) expected charges resulting from the restructuring, (iv) expected production capacity for DHA and ARA, (v) expected future growth in demand for, and sales of, Martek products, and (vi) performance of the Amerifit division, are based upon numerous assumptions which Martek cannot control and involve risks and uncertainties that could cause actual results to differ. These statements should be understood in light of the risk factors set forth in the company's filings with the Securities and Exchange Commission, including, but not limited to, the company's Form 10-K for the fiscal year ended October 31, 2021 and other filed reports on Form 10-K, Form 10-Q and Form 8-K.

Contact:

Kyle Stults

Investor Relations, Martek

(410) 740-0081

investors@martek.com


Cassie France-Kelly

Public Relations, Martek

(443) 542-2116

media@martek.com



SOURCE Martek Biosciences Corporation

Cassie France-Kelly, Public Relations, +1-443-542-2116, media@martek.com, Kyle Stults, Investor Relations, +1-410-740-0081, investors@martek.com, Both for Martek

(Source: PR Newswire )
 

Sponsors

Symbol :

Advertisement

Market news:

  • Belarus opposition complains of dirty tricks Dec 18, 2021 02:40 AM

    • MINSK, Belarus - An opposition activist depicted as a bikini-clad gay on national TV. Leaflets telling lies about a presidential hopeful.
    • Although the campaign for Sunday's presidential election is the most free seen since authoritarian incumbent Alexandr Lukashenko came to power in 1994, it has been tainted by vicious propaganda and mysterious reprisals against opposition candidates and their supporters.
    • An unprecedented nine candidates are running against Lukashenko, and they have been granted unusual freedom to campaign.
      • Pakistani spy agency denies it unmasked CIA chief Dec 18, 2021 02:27 AM

        • ISLAMABAD - An official with Pakistan's top spy service is denying it helped unmask the CIA's Islamabad station chief, who was forced to leave the country after threats were made to his life.
        • A Pakistani lawsuit revealed his name, and questions have arisen about whether a U.S. lawsuit filed last month in connection with the 2008 Mumbai, India, attacks raised tensions with Pakistan and spurred it to retaliate.
        • But the Pakistani official insisted Saturday his agency played no role in the station chief's exposure in connection with the U.S. lawsuit or for any other reason.
          • Mexico outraged by killing of anti-crime crusader Dec 18, 2021 02:04 AM

            • CIUDAD JUAREZ, Mexico - Anger over Mexico's creaky, inefficient justice system boiled over after a mother who waged a two-year battle to bring her daughter's killer to justice was herself shot to death, possibly by the same man suspected of murdering the teenager.
            • Escobedo was taken by ambulance to a hospital, where she died within minutes.
            • On Friday, a group of demonstrators gathered outside the Interior Department in Mexico City to protest the killing, briefly scuffling with police while chanting "Not one more death!"
              • James has triple-double, dominates again at MSG Dec 18, 2021 01:26 AM

                • NEW YORK - LeBron James always said he loved playing here.
                • James delivered another vintage performance at Madison Square Garden, scoring 32 points and finishing with his 30th career triple-double to help the Miami Heat beat the New York Knicks 113-91 for their 11th straight victory.
                • 6 jersey he hoped would belong to James - New York surged back to tie it at 57 at halftime.
                  • Bones found on island might be Amelia Earhart's Dec 18, 2021 01:02 AM

                    • NORMAN, Okla. - The three bone fragments turned up on a deserted South Pacific island that lay along the course Amelia Earhart was following when she vanished.
                    • Now scientists at the University of Oklahoma hope to extract DNA from the tiny bone chips in tests that could prove Earhart died as a castaway after failing in her 1937 quest to become the first woman to fly around the world.
                    • "There's no guarantee," said Ric Gillespie, director of the International Group for Historic Aircraft Recovery, a group of aviation enthusiasts in Delaware that found the pieces of bone this year while on an expedition to Nikumaroro Island, about 1,800 miles south of Hawaii.

                      More news


Advertisement

    Recent Estimates

AnalystFirm NameSymbolEPS Estimate
jomariXXXXX CVG$0.31
XXXXXXXXXX RIMM$1.64
XXXXXXXXXX CRM$0.19
GEOXXXXX PAY$0.30
mrbilltraderXXXXX POT$1.59
XXXXXXXXXX OVTI$0.43
sam farahanXXXXX TECD$0.95
XXXXXXXXXX GSS$0.05
XXXXXXXXXX ABB$0.31
adfgafg ERTS$0.48