Gerresheimer Acquires Two Further Joint Ventures in China
Following the acquisition of a majority interest in two Chinese companies for pharma packaging earlier this year, Gerresheimer has now proceeded with its strategically oriented purchase programme in the growth market of China.
29/09/06 The Gerresheimer Group is continuing its expansion course in Asia. Following the acquisition of a majority interest in two Chinese companies for pharma packaging earlier this year, Gerresheimer has now proceeded with its strategically oriented purchase programme in the growth market of China. The Group is acquiring two majority shareholdings in the Chinese packaging group BGIF. For the Gerresheimer CEO, Dr. Axel Herberg, this acquisition marks “another step on our growth path, through which we now also obtain access to the Chinese market in the life-science segment.”
For life-science customers, Gerresheimer has in the past carried out production operations in Vineland, New Jersey, USA and in Mexico. Through the two joint ventures with the BGIF Group the Gerresheimer Group will now be represented by its own production facility in China for laboratory glassware as well as tubular and moulded glass.
The BGIF Group produces and processes laboratory glassware at two plants in Beijing with a total of 550 employees. Sales in the financial year 2006 will amount to almost €10m. Through its American subsidiary, Gerresheimer is taking over 70% of the shares in each of the two plant-related joint ventures. Through the acquisition the company also obtains the licence rights to the trademark Bomex, which is very well-known and successful in Asia.
In the plant of the new joint venture Kimble Bomex Glass, investment will take place in new production equipment to ensure high quality and volume growth. At the second plant in Beijing, where Kimble Bomex Labware will carry out processing of laboratory glassware, further investment is also planned.
As CEO Dr. Axel Herberg explains, Gerresheimer is through the new acquisitions consistently pursuing the strategy of targeted investments in Asia in companies with leading market positions and dynamic growth. Sales growth for the two companies in 2007 is expected to be in excess of 20%. “We are expanding our portfolio in low-cost locations for life-science products and, through the acquisition of this majority interest in the Chinese market leader, will develop into the leading worldwide supplier,” says Herberg. The acquisition is subject to approval by the Chinese authorities, which is expected in the next few weeks.
