Mitsubishi deal to buy Qualicaps will close in March
pharmafile | January 15, 2013 | News story | Manufacturing and Production |Â Â Mitsubishi, Patheon, QualicapsÂ
Mitsubishi Chemical has agreed to buy Qualicaps from US private equity company Carlyle Group in the latest round of M&A in the capsule sector.
Mitsubishi is offering to pay 55.8 billion yen (around $630 million) for Qualicaps, which makes hard gelatin capsules, non-gelatin hypromellose capsules (HPMC) and pharmaceutical processing equipment, including the world’s first pharmaceutical grade, animal origin free capsule under the Quali-V brand.
The deal comes at a time when most of the top capsule-making companies have been changing hands, with Patheon completing a $255 million deal to buy Banner Pharmacaps last October – having already snapped up Columbian company Procaps earlier in the year – while Pfizer sold off its Capsugel business to private equity form KKR for $2.38 billion in 2011.
Qualicaps is said to be the largest provider of pharmaceutical capsules in Japan and the second largest in the world, with a 20% market share in North America and Europe.
Carlyle acquired the company in 2005 from Shionogi & Co for an undisclosed sum, and said in a statement that in the intervening years has helped Qualicaps develop into “an independent, fast-growing and highly profitable business”, by expanding manufacturing capabilities and putting in a global marketing strategy.
Whilst owned by the private equity group it also expanded with the acquisition of Canadian gelatin capsule manufacturer Pharmaphil, capsule machine specialist Technophar.
“During Carlyle’s ownership, our revenue and EBITDA increased by more than 50% and 120% respectively through development of Quali-V capsules and expansion into new markets and product segments,” commented Qualicaps’ chief executive Bernd Brust.
Mitsubishi Chemical said that Qualicaps’ focus is complementary to its own existing healthcare solutions and active pharmaceutical ingredient (API) businesses, and would help it to provide higher value-added capsule products to pharmaceutical customers.
The transaction is subject to regulatory approvals and is expected to close in March.
Phil Taylor
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