German primary packaging products manufacturer Gerresheimer has entered into an agreement with Nemera Development to acquire plastic vials and closures company Centor US for $725m.
With this investment, Gerresheimer will further extend its pharmaceutical packaging business.
Based in Ohio, Centor manufactures plastic vials and closures for oral drugs in the prescription retail market. Its product portfolio includes Screw-Loc and 1-Clic, which are leading products in the US plastic vials market.
Nemera Group's carve-out Centor generated $167m in annual sales volume last year.
Subject to regulatory approval, the acquisition is expected to be completed in the fourth quarter of this year.
Upon completion of the deal, Centor will become a part of Gerresheimer's plastics and devices division.
Centor president Paul Arsenault said: "In the future, we will contribute to Gerresheimer's success with our market leadership in the North American prescription plastic vial retail market."
Gerresheimer has more than 40 production facilities in Europe, North and South America and Asia. The company's products include insulin pens, inhalers, pre-fillable syringes, vials, ampoules, bottles and containers for liquid and solid pharmaceuticals with closure and safety systems, and cosmetic packaging products.
Gerresheimer CEO Uwe Röhrhoff said: "Centor is the highly profitable market leader for plastic vials and closures in the prescription retail market. This is a perfect fit to extend our product offering from packaging of parenterals to the packaging of oral drugs in the US.
"We expect that this acquisition will increase shareholder value significantly."
Image: Gerresheimer manufactures pharmaceutical packaging products. Photo: courtesy of Gerresheimer.