Johnson Matthey announces that it has acquired Pharm-Eco
laboratories, Inc. ("Pharm-Eco")
for a cash consideration of US$9.9 million. In addition,
Johnson Matthey has taken on
Pharm-Eco's net borrowings of US$37.0 million.
Based on two sites in the Boston, Massachusetts area and employing around 120 people,
Pharm-Eco provides
contract research,
process development and small scale
synthesis
services to the
pharmaceutical industry. Its turnover in the financial year ended 31st
December 2000 was $17 million.
Pharm-Eco's
services are primarily focussed on
drug development from discovery through to
Phase II
clinical trials. These services complement Johnson Matthey's Pharmaceutical
Materials business, based at West Deptford, New Jersey, which manufactures active
pharmaceutical ingredients for
drugs that are already approved for market or are very near to
receiving final approval.
The acquisition presents Johnson Matthey with enhanced opportunities to bring new
pharmaceutical manufacturing business to the West Deptford facility, which is currently
undergoing a major programme of expansion, and considerably extends its existing portfolio
of products and services for customers in the pharmaceutical industry.
The acquisition of Pharm-Eco is expected to be
earnings neutral in Johnson Matthey's current
financial year and earnings enhancing thereafter.
Commenting on the acquisition, Chris Clark, Chief Executive of Johnson Matthey said:
"Niche
acquisitions in our core business areas are in line with our strategy for growth. We are
also investing heavily in our existing businesses. The acquisition of Pharm-Eco represents an
excellent opportunity to further expand our activities in the rapidly growing pharmaceutical
materials market."
Forrest Sheffy, Vice President and General Manager, Pharmaceutical Materials, said:
"Pharm-Eco has a strong customer base and an outstanding reputation for the quality of its
service throughout the pharmaceutical industry. The acquisition fits well with our existing
activities in pharmaceutical materials."