WORMS, GERMANY (May 16, 3:15 p.m. ET) — German plastic films producer Renolit AG is reinforcing its position in the global medical sector by acquiring the medical films division of China-based Austar Pharma & Medical Consumables.
The strategic Chinese takeover will see Renolit purchase the pharmaceutical packaging group's medical tubing, ports and caps manufacturing facilities as well as its specialist films operations at plants in the Huairu and Tongzhou districts of greater Beijing.
Current CEO and major Austar PMC shareholder Mars Ho will remain CEO of the acquired business to oversee its integration into Worms-based Renolit.
Austar operations will be absorbed into the German group's own medical division, which already has a Chinese plant in Guangzhou producing film and tubes for applications such as blood bags. The Austar business employs 400.
“Austar medical film division represents a key asset for the further development of Renolit's medical business,” commented Renolit's chief operating officer Pierre Winant. The takeover enables Renolit Medical to expand its product and technical portfolio, increase its production and research capability and to reinforce its presence in China, he added in a statement.
Renolit, a family-run group with 65 years' experience, has five plants manufacturing medical products with the main operations in Enkhuizen in the Netherlands and in City of Commerce, Calif. Three other complimentary units are Alkor Folien GmbH in Thansau, Germany; Renolit Hispania SA in Villatuerta, Spain and Renolit Guangzhou Ltd. in China.
Commenting on the deal, Ho said: “This will not only benefit our customers with better products and services, but also all the employees of Austar medical film division involved.”
Meanwhile, Renolit announced it has integrated two German film manufacturing businesses that it bought from Belgium's Solvay Group six years ago.
Renolit, which employs 4,500, has global operations with 30 plants and commercial branches located across four continents. Its film products are used in a variety of technical applications among them in the automotive and construction sectors.