Rexam plc is expanding its pharmaceutical and medical plastic packaging portfolio with a 125 million euro ($145 million) purchase of Risdon Pharma Developments SA.
London-based Rexam on June 4 announced the deal to buy the Paris-based company. Risdon makes pharmaceutical products including eye droppers, pill jars and drug delivery devices at two plants in France and Germany.
The cash deal was reached with Risdon shareholders headed by British investment firm Montagu Private Equity Ltd. of London, formerly known as HSBC Private Equity. HSBC acquired the French molder from Philadelphia-based Crown Cork & Seal Co. Inc. in March 2002.
Plants run by Risdon Pharma, which employs 350, are located at the heart of centers of the European pharmaceutical industry. The firm has one molding and assembly plant in Offranville, France, that does injection and injection blow molding. The plant specializes in ophthalmological packaging.
The Neuenburg, Germany, plant also has clean room facilities and specializes in injection molding and high-speed assembly for medical devices and drug delivery systems.
Last year Risdon Pharma reported a pretax profit of 13 million euros ($15 million) on sales of 51 million euros ($59 million), according to Rexam. Risdon Pharma will join Rexam's Beauty & Closures business, which manufactures pharmaceutical dispensing systems and health-care child resistant and tamper-evident closures, mainly in Europe and the United States.
Rexam has had its eye on acquiring Risdon operations for some time. In fact, in December 2001, Rexam bought another part, pump maker Risdon-RMS of Thomaston, Conn., for $107 million.