Gerresheimer To Sell Life Science Research JV To Duran In $131 Mln Deal

(RTTNews) - German drug delivery devices maker Gerresheimer AG (GRRMF.PK) Monday said it would sell its joint venture Life Science Research business to Duran group, a portfolio company of One Equity Partners. Total transaction enterprise value is $131 million. The transaction will be an all-cash acquisition. Its closing is subject to regulatory approvals.

The sale is in line with its strategy of focusing on packaging and device solutions for pharmaceutical customers.

Gerresheimer and Chase Scientific Glass, Inc. are the partners in the joint venture, Kimble Chase Life Science and Research Products LLC, holding 51% and 49%, respectively.

Uwe Röhrhoff, CEO of Gerresheimer, said, "We are a leading global provider of pharmaceutical packaging and medical devices. Producing laboratory glassware is not a core business for us and synergies are very limited. Together with our joint venture partner Chase Scientific Glass, Inc., we have decided to sell the business."

Kimble Chase Life Science, based in Tennessee, USA, is a producer of laboratory and scientific glassware. Kimble Chase's annual revenues in financial year 2015 amounted to 100.7 million euros, with the majority of sales in North America.

Revenues of the Life Science Research division, Kimble Chase, declined by 2.6% in the first six months of 2016 to 47.8 million euros. At EUR 6.5m, adjusted EBITDA for the first half of 2016 was slightly down compared to the prior-year period.

Assuming the transaction is not closed before end of the financial year in November 2016, Gerresheimer's expectations for financial year 2016 remain unchanged.

Further, Gerresheimer reiterated the indication for the financial years 2016 to 2018. The company continues to expect average annual organic revenue growth of between 4% and 5% for the period from 2016 to 2018, and adjusted EBITDA margin of around 22% for financial year 2018.