Qualicaps Group is due to complete the acquisition of Ontario-based firm Pharmaphil by the beginning of next week.
Pharmaphil is a manufacturer of empty gelatine capsules, the same line of business as Qualicaps who supply empty two-piece gelatine and non-gelatine capsules and capsule-filling and sealing equipment. Terms of the acquisition agreement were not disclosed.
Qualicaps has manufacturing sites in Spain, Japan and the US, and under the terms of the agreement Pharmaphil will become a subsidiary of the US-based operations.
Qualicaps (previously Shionogi Qualicaps) was acquired in 2005 by private equity firm The Carlyle Group through a management buyout, and since then has focused on its growth through business development and acquisitions.
The company has a range of capsule products serving the pharmaceutical and nutritional sectors, including its Quali-V brand of non-gelatine hypromellose capsules (HPMC) and its LIQFIL capsule filling equipment.
Pharmaphil, a Cardinal Health company, has been in the capsule manufacturing business for over 40 years and underwent a management buyout in 2004. Producing capsules used in pharmaceutical and nutritional applications, the company's empty capsule products are versatile and can be used with powders, pellets, beads, tablets, pastes and liquids.
"With Qualicaps' broader product line and global reach, this transaction brings additional value to Pharmaphil's customers by offering a broader package of capsules and equipment to help satisfy their requirements for growth." said Pharmaphil co-owner, Vancho Cirovski.
According to industry figures in 2005, the largest pharmaceutical and supplement dosage delivery forms by volume were tablets, accounting for around 75 per cent of the total global oral dose market. Gelatine two-piece capsules were the second largest sector by volume accounting for 20 per cent of the total market, at around 240bn capsules a year.