Corning Incorporated GLW, +0.38% announced today that it has reached a definitive agreement with Gerresheimer AG to acquire its pharmaceutical glass tubing business for 196 million euros. The deal is expected to be completed by year-end, subject to customary closing conditions, including receipt of regulatory approvals.
Gerresheimer is a global leader in the manufacture of glass and plastic packaging products for the pharmaceutical and health care industry. Upon closing, Corning will assume ownership of Gerresheimer’s glass tubing operations in Vineland, N.J., and Pisa, Italy. As part of this transaction, Corning and Gerresheimer will enter into a long-term supply agreement for pharmaceutical glass tubing. In addition, the companies will form an equity venture to focus on accelerating Corning innovations for the pharmaceutical glass packaging market. The equity venture will be 75% owned by Corning.
Advances in new drug-delivery technologies, along with an industry need for greater operational efficiencies, are driving the demand for more stringent pharmaceutical glass packaging requirements. This transaction, when complete, will enable Corning to bring its precision glass expertise to the pharmaceutical glass packaging market.
“We think this is a tremendous opportunity to apply Corning’s unique model of innovation and operational excellence to an adjacent market, which is experiencing healthy growth,” said Wendell P. Weeks, chairman, chief executive officer and president. “It enables us to bring revolutionary new technologies to the pharmaceutical glass packaging market with Gerresheimer, a long-standing leader in the industry. There are also a number of near-term cost synergies with our global melting and forming operations as well as future sales synergies with our existing Life Sciences customers.”
Source: Corning Inc.
