Oystar has sold its processing tech units, Huttlin and Manesty, to Bosch in a deal that continues its effort to refocus on primary and secondary packaging.
The deal, financial terms of which have not been disclosed, will see Huttlin and its 80 staff and Manesty and its 110-strong workforce operate as part of Germany-headquartered Bosch.
Schopfheim, Germany-headquartered Huttlin makes equipment for drying and granulation while Manesty, which is located in Knowsley outside Liverpool, UK,is a specialist manufacturer of tablet compression and coating machines.
Together the divested units generated revenue of some €49m ($71.8m) in 2010.
Oystar CEO Tom Graf told in-Pharmatechnologist.com that the divestiture is part of a wider growth plan and desire to build the firm'sbusiness around its core set of capabilities.
"The sale was solely a strategic portfolio-decision. Due to our size in the market for primary and secondary packaging, it is easier for us to gain market share in those core markets than in the process technology market where we are a smaller player. It is a question of size, not of performance.
The divestiture fits with the restructuring plan Oystar has undertaken over the last few years in response to the economic downturn, which caused many of the firm’s customers to delay orders.
These delays, coupled with lower demand overall, left Oystar with a loss of €75.8m ($104m) for the full year 2009, down from the €30.6m profit it recorded the previous year, with sales of just €402m.
Since then the firm has sought to cut cost and streamline its global business units, most recently with the sale of its Brazilian firm Oystar Fabrima and consolidation of its North American operations.