Siegfried Acquires Significant Segments Of BASF’s Pharmaceutical Supply Business
The Siegfried Group (SIX: SFZN) signed an agreement with the German company BASF with the aim of acquiring significant segments of BASF’s pharmaceutical supply business and connected chemical-pharmaceutical production units in Germany, France and Switzerland. Siegfried expects the transaction to be concluded in fall 2015 subject to the necessary consultation procedure in France and approval by the antitrust authorities. The three sites with over 800 employees reported total sales for 2014 of some CHF 280 million. The debt-free price of acquisition amounts to approximately EUR 270 million. Financing of the transaction is secured by a syndicate of Swiss banks. An increase of capital stock is not planned. Following completion of the transaction, Siegfried plans to issue a hybrid bond for partial refinancing.
Similar to Siegfried, the BASF business unit concerned supplies the worldwide pharmaceutical industry and produces active pharmaceutical ingredients and intermediate products and, therefore, ideally complements Siegfried. The planned transaction comprises sites in Minden (Germany), Saint-Vulbas (France) and Evionnaz (Switzerland).
Siegfried CEO Rudolf Hanko: “Through this acquisition, Siegfried will reach the critical size to play a leading role in the supplier market as a recognized partner for the pharmaceutical industry. This acquisition demonstrates the growth potential for the Siegfried Group.”
Leading market position thanks to acquisition
The combination of Siegfried and BASF’s pharmaceutical supply business represents an attractive base for sustained profitable growth. The combination of the two companies’ complementary customer portfolios and higher flexibility in acquiring new business owing to sufficiently available capacity will have a positive effect on sales and revenue. Moreover, synergies will be achieved in the areas of overheads, IT and procurement as well as through coordination of the global production network with the new site in Nantong, China. BASF’s pharmaceutical supply business contributes complementary technological platforms, such as azide chemistry, phosgenation and low-temperature chemistry. As a result, new customers and projects will be secured. The acquisition will make a significant contribution toward implementation of Siegfried’s one-stop strategy.
Siegfried will continue operations at the three pharmaceutical supply business sites of BASF. Following the acquisition, Siegfried will review all of its existing and new production sites with regard to resource efficiency and synergy potential in order to raise competitiveness in the medium to long range. In the new constellation, the Zofingen site will remain the Group’s headquarters.
Closing expected in fall 2015
It is expected that the transaction will be closed in the fall of 2015 following completion of ongoing consultations in France, BASF’s subsequent confirmation of the transaction and availability of the necessary approval by the antitrust authorities. On a debt-free basis, the price of the acquisition amounts to approximately EUR 270 million. Financing of the transaction is secured by a syndicate of Swiss banks. An increase of capital stock is not planned. Following completion of the transaction, Siegfried plans to issue a hybrid bond for partial refinancing.
Integration to be completed end 2016
This acquisition represents the final step in Siegfried’s targeted acquisition policy implemented in the last five years. In terms of this policy, Siegfried previously acquired California-based AMP and the two German companies, Hameln Pharmaceuticals GmbH and Hameln RDS GmbH. Moreover, Siegfried secured land in one of China’s most modern chemical industrial parks (Nantong) and operates a production plant there.
With total sales of more than CHF 600 million and EBITDA in the range of CHF 100 million (based on 2014 results), Siegfried will reach the necessary size to remain a comprehensive and leading supplier in the ongoing consolidation process. Following the successful acquisition, the Siegfried Group will employ a workforce of about 2,200 employees at nine sites on three continents. The transaction provides an attractive base for continued profitable growth.
For further information:
Media:
Peter Gehler, Chief Communications Officer
peter.gehler@siegfried.ch
Phone +41 (0)62 746 11 48
Mobile +41 (0)79 416 41 16
Financial Analysts:
Michael Hüsler, CFO
michael.huesler@siegfried.ch
Phone +41 (0)62 746 11 35
Siegfried Holding AG
Untere Brühlstrasse 4
CH-4800 Zofingen
Tel. +41 (0)62 746 11 11
Fax +41 (0)62 746 11 03
www.siegfried.ch
About Siegfried
The Siegfried Group is active worldwide in the field of Life Sciences with production facilities located in Switzerland, Germany, China, Malta and in the USA. At the end of 2014, Siegfried reported annual sales of CHF 315 million and employs at the time being approximately 1400 employees. Siegfried Holding AG is listed on the Swiss Exchange (SIX: SFZN).
Siegfried is active in both the primary and secondary production of drugs. The company develops and manufactures active pharmaceutical ingredients for the research-based pharmaceutical industry as well as the corresponding intermediate steps and controlled substances, and provides development and production services for drugs in finished dosage forms including sterile filling.
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The Siegfried Group (SIX: SFZN) signed an agreement with the German company BASF with the aim of acquiring significant segments of BASF’s pharmaceutical supply business and connected chemical-pharmaceutical production units in Germany, France and Switzerland. Siegfried expects the transaction to be concluded in fall 2015 subject to the necessary consultation procedure in France and approval by the antitrust authorities. The three sites with over 800 employees reported total sales for 2014 of some CHF 280 million. The debt-free price of acquisition amounts to approximately EUR 270 million. Financing of the transaction is secured by a syndicate of Swiss banks. An increase of capital stock is not planned. Following completion of the transaction, Siegfried plans to issue a hybrid bond for partial refinancing.
Similar to Siegfried, the BASF business unit concerned supplies the worldwide pharmaceutical industry and produces active pharmaceutical ingredients and intermediate products and, therefore, ideally complements Siegfried. The planned transaction comprises sites in Minden (Germany), Saint-Vulbas (France) and Evionnaz (Switzerland).
Siegfried CEO Rudolf Hanko: “Through this acquisition, Siegfried will reach the critical size to play a leading role in the supplier market as a recognized partner for the pharmaceutical industry. This acquisition demonstrates the growth potential for the Siegfried Group.”
Leading market position thanks to acquisition
The combination of Siegfried and BASF’s pharmaceutical supply business represents an attractive base for sustained profitable growth. The combination of the two companies’ complementary customer portfolios and higher flexibility in acquiring new business owing to sufficiently available capacity will have a positive effect on sales and revenue. Moreover, synergies will be achieved in the areas of overheads, IT and procurement as well as through coordination of the global production network with the new site in Nantong, China. BASF’s pharmaceutical supply business contributes complementary technological platforms, such as azide chemistry, phosgenation and low-temperature chemistry. As a result, new customers and projects will be secured. The acquisition will make a significant contribution toward implementation of Siegfried’s one-stop strategy.
Siegfried will continue operations at the three pharmaceutical supply business sites of BASF. Following the acquisition, Siegfried will review all of its existing and new production sites with regard to resource efficiency and synergy potential in order to raise competitiveness in the medium to long range. In the new constellation, the Zofingen site will remain the Group’s headquarters.
Closing expected in fall 2015
It is expected that the transaction will be closed in the fall of 2015 following completion of ongoing consultations in France, BASF’s subsequent confirmation of the transaction and availability of the necessary approval by the antitrust authorities. On a debt-free basis, the price of the acquisition amounts to approximately EUR 270 million. Financing of the transaction is secured by a syndicate of Swiss banks. An increase of capital stock is not planned. Following completion of the transaction, Siegfried plans to issue a hybrid bond for partial refinancing.
Integration to be completed end 2016
This acquisition represents the final step in Siegfried’s targeted acquisition policy implemented in the last five years. In terms of this policy, Siegfried previously acquired California-based AMP and the two German companies, Hameln Pharmaceuticals GmbH and Hameln RDS GmbH. Moreover, Siegfried secured land in one of China’s most modern chemical industrial parks (Nantong) and operates a production plant there.
With total sales of more than CHF 600 million and EBITDA in the range of CHF 100 million (based on 2014 results), Siegfried will reach the necessary size to remain a comprehensive and leading supplier in the ongoing consolidation process. Following the successful acquisition, the Siegfried Group will employ a workforce of about 2,200 employees at nine sites on three continents. The transaction provides an attractive base for continued profitable growth.
For further information:
Media:
Peter Gehler, Chief Communications Officer
peter.gehler@siegfried.ch
Phone +41 (0)62 746 11 48
Mobile +41 (0)79 416 41 16
Financial Analysts:
Michael Hüsler, CFO
michael.huesler@siegfried.ch
Phone +41 (0)62 746 11 35
Siegfried Holding AG
Untere Brühlstrasse 4
CH-4800 Zofingen
Tel. +41 (0)62 746 11 11
Fax +41 (0)62 746 11 03
www.siegfried.ch
About Siegfried
The Siegfried Group is active worldwide in the field of Life Sciences with production facilities located in Switzerland, Germany, China, Malta and in the USA. At the end of 2014, Siegfried reported annual sales of CHF 315 million and employs at the time being approximately 1400 employees. Siegfried Holding AG is listed on the Swiss Exchange (SIX: SFZN).
Siegfried is active in both the primary and secondary production of drugs. The company develops and manufactures active pharmaceutical ingredients for the research-based pharmaceutical industry as well as the corresponding intermediate steps and controlled substances, and provides development and production services for drugs in finished dosage forms including sterile filling.
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