DMV-Fonterra to buy Brahmar Cellulose Private Limited

Published: 30-Aug-2011

Provides a strong base for future developments

DMV-Fonterra Excipients, a German producer of excipients for the pharmaceutical industry, is to purchase Brahmar Cellulose Private Limited (BCPL), a producer of pharmaceutical microcrystalline cellulose (MCC) and sodium carboxyl methyl cellulose (SCMC) based in Cuddalore, India.

The acquisition, which is subject to regulatory approval from Indian government authorities, should be completed in the fourth quarter. No financial details were revealed.

DMV-Fonterra Excipients says the transaction will reduce its supply chain and formulation costs by having a single source and single quality framework across its key products.

The deal also creates a unique market position for the firm as the sole manufacturer and supplier of the most commonly used diluents and superdisintegrants to the pharmaceutical industry.

‘The acquisition of Brahmar Cellulose is a further step in achieving our ambition to become a leading supplier in pharmaceutical excipients and will give a stronger base for future developments in this area,’ said Jan Jongsma, ceo at DMV-Fonterra Excipients.

DMV-Fonterra Excipient’s current global market position and sales network will be complemented by Brahmar Cellulose’s product knowledge of MCC and SCMC and its market position in India.

‘We know our customers appreciate continuity and do not like changes. Therefore current customers of BCPL can expect continuity – the same portfolio, same brands, same products from the same production locations and sales organisations. Both the Brahmar Cellulose business and DMV-Fonterra Excipients business will initially continue to operate through their current sales and distribution networks,’ said Willem Hoogwater, marketing director of DMVFonterra

DMV-Fonterra Excipients is a 50/50 joint venture between Dutch dairy company Royal FrieslandCampina and New Zealand dairy company Fonterra. The company has its own production facilities in Germany, The Netherlands and New Zealand.

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