Consort Medical becomes part of the Recipharm Group
Recipharm announced on 4 February 2020 that the offer to acquire Consort Medical plc (“Consort”) (the “Offer”) had become unconditional in all respects and will remain open for acceptances for a further 14 days, until 18 February 2020. For more information on the Offer, Recipharm refers to the press release published on 4 February 2020.
As a result of the Offer being declared wholly unconditional, Consort’s 2,000 employees and 10 facilities across the UK, Italy and Germany will become part of the Recipharm Group.
Commenting on the announcement, Thomas Eldered, CEO at Recipharm said: “We are excited to confirm the acquisition of Consort. There are many complementarities between our businesses and exciting times lie ahead as we work together to create a leading advanced delivery systems company and top 5 global CDMO.”
Consort is an integrated drug and delivery device company providing advanced delivery technologies, formulation and manufacturing services for drugs.
Recipharm will support Consort’s highly successful Bespak division as a standalone business, continuing to supply customers with competitive and innovative inhalation and other devices. The Aesica division will be integrated into Recipharm’s current CDMO business and thereby provide a further enhanced development and manufacturing service for both drug substance and drug product. Recipharm will further seek to combine its pharmaceutical development and manufacturing expertise with Consort’s innovative device offering to provide a comprehensive service for inhalation drug products.
Thomas Eldered continued: “The deal enhances our competitive position in the market, expanding the scale and breadth of our service offering so we can become a true end-to-end partner for our customers. In particular, the deal strengthens our inhalation drug product offering which is a key area of growth for our business following the creation of Recipharm Inhalation Solutions™ in 2019.”
Yesterday, a new Board of Consort was appointed with Thomas Eldered as Chairman. Today, Recipharm’s EVP Corporate Development, Mark Quick, in addition to his current position, has been appointed as the new CEO to lead the Consort business through the transition and integration process. He said: “I am proud to be taking on the position of CEO of Consort having spent many years within the Recipharm leadership team. On behalf of Recipharm, I would like to welcome all new employees to our family and look forward to a bright future for all as we work to integrate our businesses and deliver value to customers.”
Consort’s financials will be consolidated into Recipharm’s accounts from February 2020 and hence be included in Recipharm’s Q1 2020 interim report.
The transaction is fully financed through bank facilities, including a bridge facility of SEK 2,000 million. In order to repay the bridge facility, and to lower net debt, Recipharm intends to carry out one or several share issues of at least SEK 2,500 million in total whereof at least SEK 2,000 million through a rights issue, with preferential rights for Recipharm’s shareholders, subject to approval by a general meeting. The share issues are expected to be resolved and completed during the first half of 2020. Further information on the share issues will be provided in due course.
Thomas Eldered, CEO, telephone: +46 8 602 52 10
Tobias Hägglöv, CFO, telephone: +46 8 602 45 00
Recipharm is a leading Contract Development and Manufacturing Organisation (CDMO) in the pharmaceutical industry employing almost 7,000 employees. Recipharm offers manufacturing services of pharmaceuticals in various dosage forms, production of clinical trial material and APIs, and pharmaceutical product development. Recipharm manufactures several hundred different products to customers ranging from big pharma to smaller research and development companies. Recipharm’s turnover is approximately SEK 7.2 billion. The company operates development and manufacturing facilities in France, Germany, India, Israel, Italy, Portugal, Spain, Sweden, the UK and the US and is headquartered in Stockholm, Sweden. The Recipharm B-share (RECI B) is listed on Nasdaq Stockholm.
For more information on Recipharm and our services, please visit www.recipharm.com