Recipharm Signs Manufacturing Agreement with Alcon
News Dec 22, 2015
Recipharm AB has announced that it has entered into the previously announced strategic collaboration with Alcon, a Novartis company, and signed a long term supply agreement whereby Recipharm will manufacture a range of ophthalmic products using Blow Fill Seal technology.
As part of this collaboration, Recipharm will also acquire from Alcon, Kaysersberg Pharmaceuticals, a company whose main asset is a manufacturing facility located in Kaysersberg, France which currently supplies this product range.
• Long term manufacturing agreement will add annual sales in excess of EUR 36 million and EBITDA-margin well in line with the Group’s average.
• Adds a new important relationship with Alcon and further strengthens the current relationship with Novartis.
• 100% of the shares in Kaysersberg Pharmaceuticals will be acquired for a total consideration of EUR 18 million.
• Extends Recipharm’s manufacturing services offering with the growing technology of Blow Fill Seal.
• Provides potential synergy with Recipharm’s three other French facilities.
• Approximately 260 people currently employed by Kaysersberg Pharmaceuticals will continue their employment under Recipharm ownership.
• Closing is expected to take place on 31st December 2015. There are no material conditions to closing.
Thomas Eldered, CEO Recipharm AB commented “We are looking forward to extending our relationship with Alcon and Novartis and I am very pleased that they have had the confidence in Recipharm to make this commitment of a long term manufacturing agreement and sale of Kaysersberg Pharmaceuticals. Blow Fill Seal technology is a very interesting area which we believe will grow and it therefore forms an important addition to our portfolio. The high skill levels and dedicated employees in Kaysersberg will be a welcome addition into Recipharm and we look forward to working with them to further develop and grow the business”.
Financing and payment terms
• The consideration of EUR 18 million will be paid in cash with 75% in 2015 and 25% in January 2016.
• In addition, Recipharm will acquire working capital for approximately EUR 4.2 million.
• The acquisition will be financed will already available funds. No further financing will be required.