German drug delivery devices maker Gerresheimer has agreed to buy Swiss medical products developer Sensile Medical for a maximum consideration of up to €350m, with an upfront payment of €175m.
The German company expects the acquisition to allow it to deliver its clients devices with digital and electronic capabilities to administer drugs.
Gerresheimer also expects the deal to extend its business model in the direction of an Original Equipment Manufacturer (OEM).
Sensile Medical’s current projects include devices for people living with diabetes, patients with heart problems and other therapy areas, including Parkinson’s disease.
These projects, along with Gerresheimer’s own contracts, are anticipated to contribute high revenue growth for the company.
Gerresheimer chief financial officer Rainer Beaujean said: “We are accelerating our growth and laying vital groundwork for the years ahead. For Gerresheimer, Sensile Medical is a perfect fit, as it develops innovative products and platforms for drug delivery, including digital connectivity.
“Sensile Medical lays the foundation for a major extension of our business model in innovative application areas. We have also secured two major orders in our normal business, meaning that we can expect higher revenue growth and increased profitability in the medium term.”
After completion of the acquisition, Sensile Medical will become the Development Division and cover value-added devices for the entire Gerresheimer Group.
Furthermore, Gerresheimer is planning to construct a new facility in eastern Europe for the manufacture of medical devices and potentially syringes as well. This is expected to grow the company’s business in medical devices and syringes.