Siegfried Plans Acquisition of Segments of BASF’s API and Intermediates Business

The Siegfried Group has signed an agreement with BASF with the aim of acquiring segments of BASF's pharmaceutical supply business and connected chemical-pharmaceutical production units in Minden, Germany, Saint-Vulbas, France, and Evionnaz, Switzerland for approximately EUR 270 million ($301 million). The BASF business unit concerned produces active pharmaceutical ingredients and intermediates. Siegfried expects the transaction to close in the fall of 2015 following completion of the necessary ongoing consultations in France, BASF's subsequent confirmation of the transaction, and availability of the necessary approval by antitrust authorities. 

The three sites, with over 800 employees, reported total sales for 2014 of some CHF 280 million ($300 million).  Financing of the transaction will be 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.

In commenting on the proposed transaction, Siegfried CEO Rudolf Hanko said: “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.”

Once completed, Siegfried said it expects the transaction to achieve synergies in the areas of overheads, information technology, and procurement as well as through coordination of the global production network with Siegfried’s new site in Nantong, China. BASF's pharmaceutical supply business contributes complementary technological platforms, such as azide chemistry, phosgenation, and low-temperature chemistry. 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, Siegfried’s site in Zofingen, Switzerland will remain the group's headquarters.

Siegfried expects integration to be completed by the end of 2016 This acquisition represents the final step in Siegfried's targeted acquisition policy implemented in the last five years. Siegfried previously acquired California-based AMP and the two German companies, Hameln Pharmaceuticals GmbH and Hameln RDS GmbH. Moreover, Siegfried secured land in Nantong, China, and operates a production plant there.

Siegfried has total sales of more than CHF 600 million ($643 million) based on 2014 results. Following the successful acquisition, the Siegfried Group will employ a workforce of about 2,200 employees at nine sites.


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