Pharma firm makes £114m purchase of packaging services group
Burton-based Clinigen Group has made its second purchase in as many weeks, as it has agreed to acquire CSM Parent, a specialist provider of packaging, labelling, warehousing and distribution services, which has bases in Europe and the US for an initial consideration of $150m (£114.2m).
A further payment of $90m will also be made if CSM achieves certain growth targets.
The transaction was first announced at the end of September.
This news follows the group’s acquisition of iQone Healthcare Holding, a Swiss-based speciality pharmaceutical business for an initial consideration of €7.5m (£6.7m) on a cash free, debt free basis.
In a statement, chief executive Shaun Chilton said: “We are now established as a leading international expert and partner in the increasingly complex global supply and distribution of both unlicensed and licensed medicines.
“Our continued ambition is to be the global trusted leader in access to medicines. With that in mind, we continue to execute our buy and build strategy with the purchase of two niche, hospital medicines, as well as today’s announcements on the acquisitions of CSM and iQone, which create a specialist European infrastructure to benefit all of Clinigen’s businesses.
“The strength and diversity of our portfolio of complementary business, with markedly strong performances by the Commercial Medicines business and the Africa and Asia Pacific regions, led to a strong financial performance this year, with double-digit increases in both adjusted EBITDA and EPS.”
These announcements come as Clinigen reported its full-year results for the 12 months to 30 June 2018.
Revenue jumped from £302.3m to £381.2m, a 26% rise, while its pre-tax profits have risen to £35.9m to £14.1m.