Dec 24 2007
Gerresheimer AG is consistently continuing its strategy of globalisation and extension of product offerings in the pharma and life-science sector. With the acquisition of the Spanish company EDP S.A. it gains a leading manufacturer of pharmaceutical plastic packaging which contributes to the Group a total of three plants in Southern Europe and South America. “Regional expansion opens up important new growth markets for our Plastic Systems Division. At the same time, EDP ideally complements our existing product portfolio thus offering globally exploitable synergies,” comments Gerresheimer CEO Dr. Axel Herberg. The transaction is expected to be completed at the end of January 2008.
As a leading specialist for pharmaceutical primary packaging and application systems, Gerresheimer has for a considerable time enjoyed a strong position with glass products like syringe systems and pharmaceutical vials; in parallel it has expanded its pharmaceutical and medical plastics business, so far in Europe particularly. The acquisition of the new company specialising in plastic substantially expands its sphere of activity in this segment.
EDP with production plants in Spain (Zaragoza and Valencia) and Argentina (Buenos Aires) concentrates on PET containers for the pharmaceutical industry and is the market leader in this important field. This company’s annual sales total around €32m.
The products of the EDP company provide an ideal match, which will by no means be limited to the local markets. Pharma packaging based on PET, as produced by EDP in Spain and Argen¬tina, represents a real range expansion, which Gerresheimer can complement with drug delivery systems to provide a system approach. At the same time, the Spanish and South American markets of the new subsidiary are opened up for innovative packaging and system technologies from existing Gerresheimer plants. Gerresheimer’s pharmaceutical plastics business ranks among the market leaders, so far in Europe particularly.
As Herberg stresses, full integration of the new company into the Group is to be completed in the first half of 2008. The new subsidiary currently achieves an EBITDA margin of around 17%. Through targeted technical and financial optimisation measures the EBITDA margin should be increased to well above 20%.