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Gerresheimer buys India's Triveni Polymers

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December 18, 2012

DÜSSELDORF, GERMANY (Dec. 18, 12:30 p.m. ET) — Injection molder Gerresheimer AG has acquired a majority share of Triveni Polymers Ltd. Pvt., an Indian manufacturer of plastic containers and closures for the pharmaceutical industry.

Gerresheimer bought a 75 percent stake in the company for multiple of about 10 times earnings before interest, taxes, depreciation and amortization (EBITDA), although exact terms were not disclosed.

Triveni’s owners will retain a 25 percent of the company’s shares, among them the company’s current managing director who will retain his position.

The deal is scheduled to close this month.

The acquisition will speed-up Gerreshmeimer’s growth in emerging countries, said Chief Financial Officer Hans-Jürgen Wiecha.

Triveni, based in New Delhi, has annual sales of approximately INR 1.3 billion ($26 million), according to Gerresheimer. The company was founded in 1979. In 1995, it became the first Indian company to submit drug master files for packaging materials to the U.S. Food and Drug Administration, according to a news release from Gerresheimer.

Triveni has more than 300 employees and a manufacturing plant in Kundli with extrusion blow molding and injection blow molding capabilities. In addition to pharmaceuticals, Triveni makes packaging for personal care and cosmetics, food and beverage, home care, and lubricants and chemicals, according to the company’s website.

Gerresheimer, based in Düsseldorf, makes glass and plastic specialty products for the pharmaceutical and healthcare industries. The firm has approximately 11,000 employees across 47 locations in Europe, North and South America, and Asia, and annual sales of about 1 billion euros ($1.3 billion).

In April Gerresheimer acquired Neutral Glass, an Indian manufacturer of glass pharmaceutical products.