Phillips to enter EU primary packaging with Medisize buy

11-Jul-2011 - Last updated on 12-Jul-2011 at 09:33 GMT

Phillips Plastics is to expand into Europe and add primary packaging contract manufacturing capabilities by acquiring Medisize.

Buying Finland-based Medisize for €99.8m ($138.7m) will give Phillips a stronger presence in Europe and add drug delivery devices and primary pharmaceutical packaging to its portfolio. The combined company will operate 19 production facilities across the US and Europe.

Willem van den Bruinhorst, CEO of Medisize, said: "By combining our strengths, we are not only creating an industry leading portfolio of expertise and services, we are also enhancing to provide a wider range of technologies to serve our customers on a global level.”

Medisize has production facilities in the Netherlands, Ireland, Switzerland, Czech Republic and Finland. From these facilities Medisize produces primary packaging, such as bottles and closures, and pumps, syringes and inhalers for use in drug delivery devices.

Matt Jennings, president and CEO of Phillips, said: “Medisize has a world-class management team and European footprint, with demonstrated capabilities in high-volume manufacturing and highspeed automation that will strengthen Phillips’ service offering and global reach.”

Across these sites Medisize employs 860 people and in 2010 generated sales of €127.8m. This includes sales from the drug delivery and pharmaceutical packaging units, as well as the medical and diagnostic devices and airway management systems units.

Combining the companies

Phillips is considerably larger, with annual sales in excess of $250m and 1,500 employees at its 14 US facilities. A 120,000 sq ft plant in Menomonie, Wisconsin and 47,000 sq ft facility in New Richmond, Wisconsin are the most commonly used to serve Phillips’ medical clients.

“With the global company Phillips Plastics as its new owner Medisize can now take the next step, towards larger contracts and new geographic markets," said Arne Karlsson, CEO of Ratos, the private equity conglomerate that is selling Medisize.

The takeover is subject to approval from competition authorities and is due to close by the end of August. Medisize will retain its name and operate as Phillips’ European division, with van den Bruinhorst staying on as president.