Brady buys Brazilian label maker

By Emilie Reymond

- Last updated on GMT

Related tags São paulo Brazil

US drug packaging manufacturer Brady has bought a Brazilian label
maker in a bid to expand its operations not only in Brazil but
throughout Latin America - an area considered by analysts to have a
great business potential.

Brady, which manufactures signs, labels and other identification and security products for the pharma industry, has acquired Asterisco Artes Graficas for an undisclosed price.

"Etiquetas Asterisco's excellent customer service and capabilities in high quality, custom, printed labels is a perfect match for our strategy of expanding our label offering,"​ said Matt Williamson, president of Brady Americas.

"This acquisition expands our capabilities in Brazil and allows us to offer a broader range of label types to customers there, as well as to existing Brady customers throughout Latin America."

Latin America shows considerable and untapped business potential for the pharmaceutical industry and last year research conducted by PricewaterhouseCoopers identified the region as one pharmaceutical industry leaders should be targeting.

The economic recovery of Argentina and Brazil and the strong manufacturing base developing in Mexico are all making Latin America much more appealing as a place in which to conduct development and production, according to PwC.

And the market is showing strong scope for growth. The United Nations projects the overall population of the region will increase by about 23 per cent over the next 20 years, from 504 million to 623 million, and mortality rates for cancer, heart disease and strokes and the incidence of diabetes are all increasing as a result of more sedentary lifestyles, smoking, drinking and obesity.

Brazil and Mexico are the two biggest markets and have stable economies, manufacturing experience and potential for growth so are good first targets.

The PwC report said that as a means of testing the market it is advisable to form an alliance with a local company. Once companies have an established base they can use it as a gateway from which to move into other Latin American countries.

And that is exactly the type of strategy Brady has chosen to adopt.

The company established its presence in Brazil in 1998 with the acquisition of VEB Sistemas de Etiquetas, also in Sao Paulo. It then built a manufacturing facility in Manaus in 2002.

And finally Sao Paulo-based Asterisco which had sales of about $7m (€5.3m) last year and employs 60 people.

Brady has more than 9,000 employees in North and South America, Europe and Asia and generated sales of more than $1bn this year.

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