Gerresheimer has bought Brazilian pharmaceutical plastic packaging maker Vedat, citing rapid growth of the country’s drug market, particularly the generics segment, as the main driver for the acquisition.
Sao Paulo-based Vedat produces a range of plastic packaging technologies, including plastic closures, PET bottles and other plastic containers, with the majority of its customers being in the pharmaceutical sector.
Gerresheimer spokesman Jens Kuerten told in-Pharmatechnologist.com the Brazilian firm’s capabilities in cap and closures, compression molding and its 450-strong workforce are a key part of his company’s South American growth plan.
“Vedat will be integrated into the Gerresheimer Plastic Packaging South America organization,” he explained, adding that “Gerresheimer already operates two plastic packaging plants in Brazil and one plant in Argentina.
“The key management team of Vedat will continue their successful work under Gerresheimer ownership. The former owners of Vedat have retired from the board.”
Gerresheimer has stated that it wants to increase the revenue it generates in emerging markets to €200m by 2013 and will doubtless be hoping that Vedat’s €45m a year revenue makes a significant contribution to this effort.
The acquisition is the second time Gerresheimer has expanded its South American business in just over two years – in January last year opened an insulin pen facility in Sao Paulo – and is a further indication of the potential it sees in the market.
Kuerten reiterated this belief, explaining that this is because Brazil’s pharmaceutical sector is going through a period of rapid growth as a result of a variety of factors.
“Firstly, more people have access to health services and medication as a result of better income distribution and social programs.
“Secondly, a wide range of government measures have stimulated the Brazilian generic market and innovation. Growth in the Brazilian pharmaceutical market is expected to remain at 10 per cent or more.
Medical plastic investment
The Vedat deal follows just days after Gerresheimer announced plans to consolidated and invest in the other part of its plastics business.
In a press statement last week the German firm said it invest €3.5m in its medical plastic systems manufacturing facility in Wackersdorg, Germany to establish a technical competence centre.
The plan is to improve the integration between its medical plastics unit and its engineering and sales units to take advantage of current market opportunities according to CEO Uwe Rohrhoff.
“One example is the diabetes sector, which gains in significance globally. In the project and solution-oriented medical plastic systems business, the keys to success are quality, competence and individual customer support.
“By pooling our development, engineering and sales competence at one single location we can further improve our service to customers.
Work is due to begin next month and expected to be completed in March next year.