The two firms will also further their cooperation to offer superior functional coatings for pharmaceutical tablets
Colorcon is to purchase BASF's Kollicoat IR Coating Systems product line for an undisclosed sum.
The deal, which is subject to approval by the Brazilian competition authorities, will also include BASF's 'current customer business, inventory and relevant know-how'.
Colorcon said the addition of these products widens the ready formulated options available to Kollicoat IR customers and acknowledges Colorcon’s existing film coating product line and position as a leading innovator of fully formulated film coating systems.
With the acquisition, Colorcon will also further strengthen its existing activities with PVA-based pigmented, ready-to-use film coatings, for use on immediate release forms of pharmaceuticals and dietary supplements.
'This sale enables both companies to focus on their core competencies, and further strengthens our existing cooperation,' said Kelly Boyer, General Manager Coatings at Colorcon.
This sale enables both companies to focus on their core competencies, and further strengthens our existing cooperation
After final closure of the transaction all existing customers of Kollicoat IR Coating Systems will be served by Colorcon from its worldwide production facilities.
Both firms said they are also looking forward to expanding their film coating co-operation by combining BASF’s polymer expertise and Colorcon’s formulation and application knowledge.
Frank Stein, Vice President Global Segment Management Pharma Solutions at BASF, said: 'Customers will benefit from both the exceptional functional performance of the products as well as from Colorcon’s worldwide unique, customised services.
'BASF will focus on developing and promoting innovative film coating polymers including Kollicoat IR.'
The transfer of Kollicoat IR Coating Systems does not affect BASF’s Kollicoat IR polymer business.
Colorcon and BASF previously announced their cooperation in October 2014 for using the immediate release coating polymer Kollicoat IR for Colorcon’s fully formulated ready-to-use coatings.