Aceto buys into bio-derived APIs
business from Switzerland's Roche, making its first foray into the
market for biologically-derived active pharmaceutical ingredients
The deal marks Aceto's fourth acquisition in Germany, and lends credence to the view that overseas firms are on the look-out for acquisition candidates as the European chemicals industry continues down the restructuring path. For Roche, the sale reflects its goal of trimming down its operation to become more of a pure-play pharmaceutical firm.
According to Aceto's chief financial officer Douglas Roth, Pharma Waldhof currently has about €9.8 million in annual sales, and he expects the deal to be accretive to earnings. The US firm paid for the company with cash in hand and has not absorbed any debt with the acquisition.
Aceto currently generates 35 per cent of its $275 million (€216m) annual sales outside the US. The company is known to harbour ambitions to become a player in the nascent generic biologics market, and this acquisition brings this target closer.
The deal also strengthens Aceto's relationship with Roche, as the Swiss firm will continue to manufacture the principal biopharmaceutical APIs that Pharma Waldhof distributes.
Aceto's largest business is the supply of health science chemicals, including chemical APIs, advanced pharmaceutical intermediates and nutritionals, although it is also active in chemicals and colourants.