West Pharmaceutical Services Inc. has acquired testing services provider Monarch Analytical Laboratories Inc.
The Lionville, Pa.-based medical components manufacturer is purchasing all the outstanding stock of privately held Monarch in exchange for cash, assumed liabilities and West shares totaling $5.6 million, West announced Feb. 14. Maumee, Ohio-based Monarch had sales of about $3 million in 2004, West said.
Both Monarch's Ohio facility and West's laboratory services in Lionville will continue operations and be combined under the name West Monarch Analytical Laboratories. West plans to retain the majority of Monarch's 20 employees. Combined with the Lionville lab, the new business unit will employ about 50, said Don McMillan, West vice president of marketing.
Monarch's strengths are a direct complement to West's, McMillan said. West specializes in elastomeric packaging, and its testing capabilities reflect that focus, while Monarch has done extensive work in testing glass and plastic vials and other containers, he said. Monarch brings experience in testing nasal and inhalation devices as well, West said.
``We've done some testing in glass and plastic and Monarch has done some rubber testing, but now we have expertise in all those materials,'' McMillan said.
West and Monarch took about nine months to secure the transaction, but West had been eyeing an opportunity to bolster and diversify its testing capacity over the past few years as customers asked the company for help with other materials more frequently, he said.
Food and Drug Administration guidelines from the late 1990s regarding the interaction of packaging with products also made extractable and leachable testing more critical, McMillan said.