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Press Release

Gerresheimer to sell Life Science Research business

Gerresheimer
Posted on: 13 Sep 16

Gerresheimer and Chase Scientific Glass, Inc. are to sell their joint venture (51/49%) Kimble Chase to Duran Group, a portfolio company of One Equity Partners

Total transaction enterprise value of USD 131m for 100% of the business

Duesseldorf, September 12, 2016 ‒ In line with its strategy of focusing on packaging and device solutions for pharmaceutical customers, Gerresheimer today announced that it is to sell its Life Science Research business to Duran group, a portfolio company of One Equity Partners. “We are a leading global provider of pharma-ceutical packaging and medical devices. Producing laboratory glassware is not a core business for us and synergies are very limited. Together with our joint venture partner Chase Scientific Glass, Inc., we have decided to sell the business,” said Uwe Röhrhoff, CEO of Gerresheimer AG.

Kimble Chase Life Science and Research Products LLC is based in Rockwood, Tennessee, USA. It is a leading producer of laboratory and scientific glassware. The product portfolio includes reusable laboratory glassware for research, development and analytics, such as beakers, Erlenmeyer flasks and measuring cylinders as well as disposable laboratory products such as culture tubes, pipettes, chromatography vials and other specialty laboratory glassware. Kimble Chase has approximately 760 employees worldwide. It has manufacturing facilities in Rockwood, Tennessee, USA, Rochester, New York, USA, Queretaro, Mexico, Meiningen, Germany, and Beijing, China. Kimble Chase’s annual revenues in financial year 2015 amounted to EUR 100.7m with the majority of sales in North America. Kimble Chase was established in 2007 as a joint venture of Gerresheimer (51%) and Chase Scientific Glass, Inc. (49%) contributing their respective laboratory glassware businesses.

Revenues of the Life Science Research division, Kimble Chase, declined by 2.6% in the first six months of 2016 to EUR 47.8m. At EUR 6.5m, adjusted EBITDA for the first half of 2016 was slightly down compared to the prior-year period.

The total enterprise value for the transaction is USD 131m. The transaction will be an all-cash acquisition. Its closing is subject to regulatory approvals.

Outlook
Assuming the transaction is not closed before end of the financial year (the end of November 2016), Gerresheimer’s expectations for financial year 2016 remain unchanged.

The reported figures in the financial indication are to be adjusted as of the closing date to reflect the disposal of the Life Science Research division as of that date. Gerresheimer reiterates the indication for the financial years 2016 to 2018:

Average annual organic revenue growth of between 4% and 5% for the period from 2016 to 2018

Adjusted EBITDA margin of around 22% for financial year 2018

Capital expenditure of around 8% of revenues

More information about Kimble Chase: http://kimblechase.com/

About Gerresheimer
Gerresheimer is a leading global partner to the pharma and healthcare industries. The company’s special glass and plastic products contribute to health and well-being. Gerresheimer is a global organization with 11,000 employees and manufacturing operations in the local markets, close to customers. It has over 40 production facilities in Europe, North and South America and Asia generating revenue in excess of EUR 1.4 billion. The comprehensive product portfolio includes pharmaceutical packaging products as well as convenient and safe drug-delivery systems such as insulin pens, inhalers, pre-fillable syringes, vials, ampoules, bottles and containers for liquid and solid pharmaceuticals with closure and safety systems, plus cosmetic packaging products.

Media contact
Jens Kürten
Group Senior Director Communication & Marketing  
Phone +49 211 6181-250  
Fax +49 211 6181-241  

For more information:
www.gerresheimer.com/en/news-events/press-releases/corporate-news/press-announcements/article/gerresheimer-to-sell-life-science-research-business.html

Editor's Details

Mike Wood
PharmiWeb.com
www.pharmiweb.com
editor@pharmiweb.com

Last updated on: 13/09/2016

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