German laboratory and process equipment provider Sartorius has signed a binding agreement with French biopharmaceutical supplier Stedim Biosystems to acquirea substantial stake in Stedim and combine its biotechnology division with Stedim's business. On completion of this transaction, Sartorius will become Stedim's majority owner controlling the combined company.
The move will strengthen substantially Sartorius's position as a technology provider to the fast growing biopharmaceutical market. The overall transaction, which is subject to approval by Stedim's shareholders and to regulatory clearance, is expected to be completed in summer 2007. The combined company will be named Sartorius Stedim Biotech.
Stedim pioneered disposable bag systems for biopharmaceutical applications. It also has a product segment consisting of door systems for aseptic transfer technology and a proprietary freeze-thaw technology. Both of these technologies offer significant growth potential in the biopharmaceutical industry.
In 2006, the company had sales worth Euro 91.4m, 44% of which were generated in North America. It employs 540 people at its locations in France, the US and Tunisia.
'This transaction significantly accelerates our strategy to offer customers fully integrated solutions for next generation biopharmaceutical manufacturing,' said Dr Joachim Kreuzburg, ceo and chairman of the executive board of Sartorius. 'Our two companies' product array, technology platforms and regional strengths are highly complementary; therefore, we are a perfect match.'
Bernard Lemaitre, chairman of Stedim, added: 'Once combined, Sartorius Biotechnology and Stedim have the realistic ambition of forming a worldwide market leader for single-use based technologies over the next five years.'
The combined company will be headquartered at Stedim's main office in Aubagne, France. However, major global functions will be located at Sartorius headquarters in Goettingen, Germany. Dr Kreuzburg will assume the position of ceo and chairman of Sartorius Stedim Biotech. Lemaitre, will be among the board members.
Sartorius Stedim Biotech is expected to generate €400-420m in sales revenue and to achieve an operating EBITA margin of around 14% in 2007.