Qualicaps bought Sao Paulo-headquartered Genix Industria Farmaceutica last week, paying around $43m (€38m) according to a Latin America Herald Tribune report.
The deal has given Mitsubishi Chemical-owned Qualicaps an ANVISA certified hard gel capsule manufacturing facility in Goais and - claims Genix - control of around 50% of the Brazilian market.
Qualicaps has set its sights on being the leading hard capsule manufacturer in Latin America, which was a market worth $72bn (€64bn) in 2014 according to IMS Health data.
Kent Payne, president of Qualicaps Americas, said buying Genix has allowed the firm to “provide a more complete coverage for our existing and potential pharmaceutical customers in the region.
“We look forward to continuing to accelerate our growth in Brazil and other Latin American countries as part of our overall strategic expansion plan for the Americas" Payne added.
Qualicaps said the deal will provide it with a short-term 7% revenue boost adding that “in the long-term the Americas region overall will increase in its overall contribution through planned future capacity increases.”
The deal has also reduced Qualicaps customer-base, or more specifically that of its subsidiary Technophar.
Canada-based Technophar makes and sells both hard and soft gelatin capsule manufacturing technologies.
It was acquired by Qualicaps in 2007, which it had supplied with production technology since 2003.
Technophar also has a long standing relationship with Genix, which saw it kit out the Brazilian firm’s Goais plant.