PE-backed CMO Synerlab buys Alcala Farma and predicts 20% rev boost
The takeover – terms of which have not been disclosed – has added a multi-dosage form manufacturing facility in Madrid and a soft gelatin capsule plant in Guadalajara, Spain to Synerlab’s network of five production sites in France.
CEO Pierre Banzet cited access to Spain’s expanding contract manufacturing market and Alcala’s European customer base as the primary drivers for the deal.
He told us “Spain is attractive because it is one of the main [CDMO] markets in Europe” adding that “Alcala Farma works with a lot of pharma companies, mainly in Spain but also in Poland or Italy.”
Banzet stressed that greater reach is important, explaining that: “The CDMO market is very competitive in Europe and in the World. The concentration will increase in the next decade.”
Alcala Farma was formed in 1995 following the merger of Glaxo and the Wellcome Foundation.
Revenue increase
Synerlab predicted that the acquisition – which was funded by its private-equity backers 21 Partners – would increase its revenue by around 20%.
Currently, the French contract drugmaker generates around €110m ($116m) a year through the provision of contract manufacturing and packaging services, 30 to 45% of which comes from French customers.
Expansion was also raised as benefit from the deal by Jacques Rossignol, managing partner at 21 Partners, who hinted at further acquisitions.
He said that: “With Alcala Farma, Synerlab has completed its first European acquisition and further opportunities outside of France are being closely reviewed.”
Synerlab is also backed Ardian, which reinvested in the firm in 2013.
