Akzo Nobel agrees principal terms to acquire Scottish pharmaceutical facility

10-Dec-2002

Akzo Nobel's business Diosynth has reached an agreement on the principal terms to acquire GlaxoSmithKline's (GSK) manufacturing facility in Montrose, Scotland. The planned acquisition will increase Diosynth's production capacity of pharmaceutical ingredients. Financial terms were not disclosed. The deal is expected to be signed and completed early in 2003. "We are looking forward to a successful completion of this deal. An acquisition like the Montrose facility is in line with Akzo Nobel's commitment to grow its Pharma businesses and maintain growth momentum," said Toon Wilderbeek, Member of Akzo Nobel's Board of Management responsible for Pharma. "We have recently announced a number of steps we are taking to achieve that. A selected acquisition like Montrose is one of them. The extra capacity from the facility will provide a secure basis for Diosynth to meet demand for pharmaceutical ingredients arising from Akzo Nobel's human and veterinary pharmaceutical businesses - in addition to custom from third parties. With the purchase of the Montrose facility, we would get that capacity and avoid large capital expenditures in existing plants." Johan Evers, General Manager of Akzo Nobel's business unit Diosynth, commented: "The Montrose facility will significantly increase our production capacity for active pharmaceutical ingredients (APIs) by complex organic chemical synthesis. Montrose employs a highly skilled workforce with know-how and long experience in working with APIs, offering a good fit with Diosynth's activities. "Montrose also has an impressive list of regulatory approvals that parallel those held by our Oss site, adding strategic depth to our ability to ensure continuity of supply to major customers. This, the supply contract with GSK that would come with the site, and the workforce's good health, safety and environment record make it an attractive prospect for Diosynth to incorporate the facility into its worldwide network of sites." The Montrose facility currently produces pharmaceutical ingredients for a variety of GSK's products, including treatments for respiratory problems, skin conditions, highly infectious diseases, cardiovascular complaints and cancer. The deal is expected to secure around 500 jobs. The Montrose facility currently has a workforce of around 700. It is expected that the reduction in headcount will be achieved by voluntary redundancies, although compulsory redundancies cannot be ruled out. Discussions with the workforce and their representatives will commence as soon as is practicable.

https://www.chemeurope.com/en/news/16685/akzo-nobel-agrees-principal-terms-to-acquire-scottish-pharmaceutical-facility.html