Buying four Catalent production facilities will strengthen Clondalkin’s secondary packaging capabilities, both in Europe and the US. Clondalkin is predicting strong growth in the healthcare secondary packaging sector and has pursued an acquisition strategy to capture the market.
Acquiring the unit gives Clondalkin “unrivalled capabilities and possibilities in location, technology and product choices”, said Norbert McDermott, CEO of Clondalkin, adding that the business is an “excellent strategic fit”.
Catalent is selling the unit because “it does not fit strategically into future plans to focus on industry leading drug development and delivery businesses as well as growing its biologics, inhalation and supply chain solutions offerings”, a spokesperson told in-PharmaTechnologist.
Following completion of the deal, which is subject to regulatory approval, Catalent will enter into a long-term supply agreement with Clondalkin “to meet the needs of its customers for high quality printed components”.
Addition of carton production capabilities to existing strength in inserts, leaflets and labels makes the sites “a perfect match”, David Lennon, Clondalkin specialist packaging division chief executive, told in-PharmaTechnologist.
Clondalkin currently has nine plants in Europe but lacks an Irish carton production site. Consequently, addition of the Ireland plant opens up cross-selling opportunities for its existing plants.
In the US there is move overlap between the capabilities of the Catalent sites and the five existing Clondalkin facilities, said Lennon. Asked if consolidation of operations is a possibility, Lennon said there are no plans at this stage.
In recent years Clondalkin has probably been the most active acquirer in the European healthcare packaging sector, said Lennon, and this strategy will continue apace.
“By continuously developing our existing operations and by acquiring well-established complementary businesses, Clondalkin has successfully developed its leadership positions in several segments of the packaging industry”, said McDermott.
Acquiring the Catalent unit, which has annual revenues in excess of $100m (€72m), will increase pharmaceutical and healthcare sales at Clondalkin to $340m. This accounts for 28 per cent of total group sales. Financial terms of the acquisition have not been disclosed.