Bilcare to buy Ineos’ rigid polymer films business for €100m ($132m) to improve access to pharmaceutical packaging customers worldwide.
The deal, expected to complete this month subject to approval by authorities in Germany where Ineos Films is based, will also include the firm’s operations Italy, India and the US.
Spokesman Joydeep Chowdury told Outsourcing-pharma that, as well as being a good fit for Bilcare’s films, foils and anti-counterfeiting technology businesses, Ineos Films’ 1,000-stong client portfolio “will open doors to customers in US and EU.”
He explained that drug industry demand for contract packaging solutions is such that: “[the] inorganic route works out to be better than to wait for long period to reach out to customers…around the world.”
Chowdury also said that the merger consolidates the India-headquartered firm’s position at the head of the packaging sector, describing the deal as “a game changer for the industry and for Bilcare.”
These comments echo those of Bilcare chairman Mohan Bhandari who said the deal is “a significant step towards creating a customer centric company to deliver path breaking innovations and establish global leadership.”
The deal fits with Bilcare’s recent efforts to grow in Europe which, in March , saw it double packaging and storage capacity for clinical trial supplies at its facility in Crughywel, Wales.
Additionally, Bilcare’s desire to strengthen its position in international markets, which contribute 50 per cent of its annual revenue, is understandable given the wave of consolidation in the packaging sector in the last few years .
For chemicals firm Ineos, the sale is part of a wider strategy that, according to Ineos Films’ CEO, Iain Hogan, has seen the company shift its business focus in the last few years.
Hogan explained that: “Whilst performing well, the Ineos Films business is no longer core to the Ineos group as the company focuses its attention on its large-scale petrochemicals businesses.
“This agreement with Bilcare will put Ineos Films assets and people at the centre of a new business with the innovation and drive necessary for it to grow and further develop, which is good for the business and its customers globally.”