Gerresheimer To Acquire Sensile Medical for $409 MillionBy
Gerresheimer, a manufacturer of special glass and plastic products to the pharmaceutical industry, has agreed to acquire Sensile Medical AG, an Olten, Switzerland-based medical technology company, in a deal worth up to EUR 350 million ($409 million).
Gerresheimer says it is extending its business model in the direction of an original equipment manufacturer (OEM) for drug-delivery platforms with digital and electronic capabilities for pharmaceutical and biopharmaceutical customers. Sensile Medical develops drug-delivery products and platforms, including digital connected capabilities. It is working with customers on developing devices for diabetics and patients with heart complaints. Going forward, it is planned that Sensile Medical will function as the Development Center for Value-Added Devices within Gerresheimer. Depending on the achievement of contractually specified milestones, the purchase price will be a maximum of EUR 350 million ($409 million). The initial payment is EUR 175 million ($204 million).
Independently of this, Gerresheimer reports that it has secured two new contracts: one for manufacturing inhalers and another for prefillable syringes for a heparin producer. At the same time, Gerresheimer reports that it has lost a smaller order in its inhaler business, resulting in a restructuring that will affect the company’s plant in Küssnacht, Switzerland, which is scheduled to be closed by the end of 2019.
For the years 2019 and 2020, Gerresheimer says its capital expenditures are expected to be higher by two to a maximum of four percentage points of revenues at constant exchange rates due to among other things a capacity expansion at its plant in Horsovsky Tyn, Czech Republic; further automation; and a new plant in Eastern Europe.