In a surprise announcement during the first morning of INTERPHEX2007, Jubllant Organosys acquired Hollister-Stier Laboratories (HS), a Spokane, WA-based contract manufacturer of sterile Injectable vials and lyophilization products, for $122.5 million, plus $16 million in capital commitments.
In a joint statement, Shyam S. Bhartia and Hari S. Bhartia, co-chairmen and managing directors of Jubilant Organosys, said, "We are excited that we have found the right fit in Hollister, with an opportunity to leverage a common and new customer base. It gives us a ready entry into contract manufacturing of injectables and presents a compelling business opportunity, especially in the U.S. market. Additionally, it also brings with it a high-quality, steady cash flow business in allergy extracts and products. Hollister is profitable and, given its strong financials, the acquisition will augment our financial performance from day one and create incremental value for all our stakeholders."
According to a Jubilant statement, the privately held Hollister-Stier posted 2006 revenues of $55 million, with a strong outlook for 2007. In the past four years, the company posted a 40% CAGR in revenues from this business. Hollister also brings with it a stable and steady cash flow Allergy Extracts and Products Business, in which it has an established presence for the last 85 years. HS was majority-owned by Windward Capital Partners since 1999, a lengthy period for a private equity firm to hold onto a company.
Jubilant intends to retain the company's current management. Anthony D. Bonanzino, president and chief executive officer of HS, remarked, "The management of Hollister-Stier is extremely excited by this acquisition, which further strengthens our position in the CMO industry. This allows us to continue our high rate of growth in our CMO business and maintain our presence as one of the largest producers of allergenic extracts. Most importantly, Hollister-Stier will continue to provide the same level of quality and service that our contract and allergy clients have come to expect of us."
The acquisition is expected to close by June 2007.