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Last year it opened its first facility in North America, in Mexico, and in March 2011 acquired Brazilian pharmaceutical plastic closure molder Védat to strengthen its pharmaceutical plastic packaging business in South America. Now Gerresheimer, a $1.4 billion/yr processor of glass and plastic packaging and other devices for the global pharmaceutical and healthcare industry, has gone on record as saying it intends to acquire a processor in the U.S. with sales of between $100 million - $250 million.
July 5, 2011
1 Min Read
That's according to an article that appeared last weekend in the German language Boerse-Zeitung (Stock Exchange Newspaper), which was subsequently cited throughout the country's financial press. Gerresheimer finance chief Hans-Jürgen Wiecha told the Börsen-Zeitung that his company is actively seeking a plastics processor of that size to acquire in the U.S. Plastics processors in the U.S. are priced at higher multiples than those in Europe, continued Wiecha, but Gerresheimer is not willing to pay more than a multiple of seven times EBIT.
As we reported last month the company recently announced it will double the plastics processing area at its facility in Horsovsky Tyn, Czech Republic, a site where the company molds inhalers, insulin pens, lancing devices and various diagnostic systems. The expansion also will boost the site's workforce.
With regard to the March purchase of Vedat, Uwe Röhrhoff, CEO of Gerresheimer AG (Dusseldorf, Germany), commented, "Expanding in emerging markets is a key component of our growth strategy. The acquisition of Védat, a technology leader and very profitable company in Brazil, is significantly strengthening our position in the South American pharmaceutical primary packaging market. It perfectly fits our strategy of doubling our sales in the emerging markets from EUR 100 million to EUR 200 million by 2013." Gerresheimer already processes pharmaceutical plastic packaging and medical plastic systems for the South American market at three facilities in Brazil and one in Argentina.
Védat, located in Sao Paolo, had annual sales of BRL 106 million (approximately € 45 million / $65.1 million) in 2010 and it employs approximately 450.
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