CRYSTAL LAKE, ILL. (June 6, 2:55 p.m. ET) — AptarGroup Inc., a maker of polymeric pharmaceutical dispensing packaging, has agreed to buy Stelmi Group, a French manufacturer of elastomeric packaging components for injectable drug delivery.
Crystal Lake-based AptarGroup will acquire Stelmi for $207 million, financed by available cash, the company said in a May 30 webcast. The deal is subject approvals and is expected to close in the third quarter of 2012.
“This strategic acquisition fits with our long-term strategy to enter new markets,” said Steve Hagge, AptarGroup president and CEO.
AptarGroup has more than 60 years of experience in pharmaceutical dispensing packaging, with a presence in 19 countries and pharma facilities in seven, Hagge said. It is the world leader in such products as nasal pumps, single-dose sprays and pulmonary metered dose valves, he said.
In 2011, the company earned $287 million on sales of $2.3 billion, he said. Its core business, AptarPharma, had income of $164.4 million on sales of $553.9 million.
“Innovation is a key element of our strategy,” Hagge said. The company is expanding globally to serve both existing customers and new markets, and in May opened a new facility in Mumbai.
In operation since 1964, Stelmi has two manufacturing plants in the French province of Normandy — near existing pharma facilities owned by AptarGroup — as well as a research and development center in Paris, Hagge said.
Stelmi specializes in products such as stoppers, syringe plungers and needle shields, and the acquisition represents ApgarGroup's first entry into the injectable drug delivery business, Hagge said.
About 70 percent of Stelmi's business is in Europe, according to Hagge. The company had revenues of approximately $104 million in 2011, he said.
Although Stelmi ranks a distant third in the injectable drug delivery sector, which is led by West Pharmaceutical Services Inc., AptarGroup has plans to leverage is geographic footprint and global commercial network to expand Stelmi's business, according to Hagge.
“With the strong innovation cultures of both companies, and potential to leverage Aptar's broad geographic presence and commercial strength, we are excited about the growth potential for Stelmi,” he said.
Executives of AptarGroup could not be reached for further comment.