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Gerresheimer and Chase Scientific Glass, Inc. are to sell their
joint venture
(51/49%) Kimble Chase to Duran Group, a portfolio company of
One Equity Partners
- Total transaction enterprise value of USD 131m for 100% of the
business
In line with its strategy of focusing on packaging and device
solutions for
pharmaceutical customers, Gerresheimer today announced that it is to sell
its Life Science
Research business to Duran group, a portfolio company of One Equity
Partners. "We are a
leading global provider of pharmaceutical packaging and medical devices.
Producing
laboratory glassware is not a core business for us and synergies are very
limited.
Together with our joint venture partner Chase Scientific Glass, Inc., we
have decided to
sell the business," said Uwe Rohrhoff, CEO of Gerresheimer AG.
Kimble Chase Life Science and Research Products LLC is based in
Rockwood, Tennessee,
USA. It is a leading producer of laboratory and scientific glassware. The
product
portfolio includes reusable laboratory glassware for research,
development and analytics,
such as beakers, Erlenmeyer flasks and measuring cylinders as well as
disposable
laboratory products such as culture tubes, pipettes, chromatography vials
and other
specialty laboratory glassware. Kimble Chase has approximately 760
employees worldwide. It
has manufacturing facilities in Rockwood, Tennessee, USA, Rochester, New
York, USA,
Queretaro, Mexico, Meiningen, Germany, and Beijing, China. Kimble Chase's
annual revenues
in financial year 2015 amounted to EUR 100.7m with the majority of sales
in North America.
Kimble Chase was established in 2007 as a joint venture of Gerresheimer
(51%) and Chase
Scientific Glass, Inc. (49%) contributing their respective laboratory
glassware
businesses.
Revenues of the Life Science Research division, Kimble Chase,
declined by 2.6% in the
first six months of 2016 to EUR 47.8m. At EUR 6.5m, adjusted EBITDA for
the first half of
2016 was slightly down compared to the prior-year period.
The total enterprise value for the transaction is USD 131m. The
transaction will be an
all-cash acquisition. Its closing is subject to regulatory approvals.
Outlook
Assuming the transaction is not closed before end of the financial
year (the end of
November 2016), Gerresheimer's expectations for financial year 2016
remain unchanged.
The reported figures in the financial indication are to be adjusted
as of the closing
date to reflect the disposal of the Life Science Research division as of
that date.
Gerresheimer reiterates the indication for the financial years 2016 to
2018:
- Average annual organic revenue growth of between 4% and 5% for
the period from
2016 to 2018
- Adjusted EBITDA margin of around 22% for financial year 2018
- Capital expenditure of around 8% of revenues
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