DKSH and Fuji Pharma have signed an agreement for the divestment of OLIC, a contract manufacturing operation of pharmaceutical products that is part of DKSH’s Business Unit Healthcare, to Fuji Pharma.
The transaction is subject to customary closing conditions.
Dr. Joerg Wolle, President & CEO of DKSH Group, says: “This decision is in line with our strategy for sustainable profitable growth, where our focus is on our core competency as a provider of Market Expansion Services, from sourcing, marketing, sales, distribution to after-sales services. The OLIC contract manufacturing facility is a heritage, non-core activity of DKSH, and is more optimally positioned in the hands of Fuji which has significant expertise in this sector. DKSH will be investing the proceeds into our core business to create higher value for shareholders.”
Mr. Hirofumi Imai, President & CEO, Fuji Pharma comments: “This acquisition is an important step for Fuji Pharma in our expansion plans outside of Japan. Through the acquisition of OLIC, we are gaining a best-in-class contract manufacturing business that is highly reputable, profitable, and well-run by highly trained and competent staff according to international Good Manufacturing Practice standards. OLIC fits perfectly with our existing operations and business in Japan and in Asia, and we are committed to investing and growing OLIC even more, and further enhancing its already well-established reputation and performance.”
“Over the past years, we have been partnering with Fuji Pharma in providing them with high-quality raw materials for the manufacturing of their products. Fuji Pharma is a company with significant manufacturing expertise and committed to establishing a strong platform in South East Asia. OLIC is in that regard a perfect fit. For the staff of OLIC, this provides an excellent future, and OLIC customers can be assured that under the ownership of Fuji, OLIC will benefit from being part of a group where manufacturing is very much a core competence,” adds Charles Toomey, global Head Business Unit Healthcare, DKSH.
Toomey continued, “Fuji’s decision to expand its operations into Thailand is proof of the increasing trend of Asian companies investing and growing in their own region, thereby driving inner-Asian growth.”
OLIC was founded in 1961. It provides contract manufacturing services for pharmaceutical, healthcare, confectionaries, and supplementary industries.
The company employs over 850 people, manufacturing over 550 products for more than 35 multinational corporations.
OLIC’s annual sales reached around one billion Thai Baht (CHF 31 million) in 2011.