Gerresheimer to sell Life Science research business

12-Sep-2016 - Germany

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.

https://www.bionity.com/en/news/159688/gerresheimer-to-sell-life-science-research-business.html