AptarGroup To Acquire Primary Packaging Components Maker, Stelmi Group For $207M
AptarGroup, Inc, a leading global supplier of a broad range of innovative dispensing systems for the personal care, fragrance/cosmetic, pharmaceutical, household and food/beverage markets, has signed an agreement to acquire the Stelmi Group, a maker of elastomer primary packaging components for injectable drug delivery. This strategic acquisition expands AptarGroup’s portfolio of solutions that it provides to the pharmaceutical industry.
Under the terms of the agreement, AptarGroup will acquire Stelmi for an enterprise value of approximately €165 million (approximately $207 million). The purchase will be financed with available cash. The transaction, which is subject to certain regulatory approvals, is expected to close in the third quarter of this year. Established in 1964, Stelmi operates two manufacturing plants located in the Normandy region of France near Aptar’s existing pharma facilities and also has an R&D centre located near Paris. Stelmi had revenues of approximately €83 million (approximately $104 million) in 2011 and has achieved EBITDA (earnings before interest, taxes, depreciation and amortization) margins that were in the range of 21-25 per cent over the past three years.
Commenting on the transaction, Steve Hagge, president and CEO said, “We are extremely pleased to announce this acquisition which fits with our long-term strategy to enter new markets and applications and to seek out opportunities in the pharmaceutical and biotech industries. With this transaction, we are entering a new area which is primary packaging components used in the injectable drug delivery market. There is proprietary know-how in the formulation and manufacturing process surrounding elastomer primary packaging components for pharmaceutical applications.”
Hagge continued, “With the strong innovation cultures of both companies, and potential to leverage Aptar’s broad geographic presence and commercial strength, we are excited about the growth potential for Stelmi.”
SOURCE: AptarGroup, Inc.