The Swiss-based Siegfried Group signed an agreement with the German company BASF with the aim of acquiring significant segments of BASF’s pharmaceutical supply business and connected chemical-pharmaceutical production units in Germany, France and Switzerland. Siegfried expects the transaction to be concluded in fall 2015 subject to the necessary consultation procedure in France and approval by the antitrust authorities. The three sites with over 800 employees reported total sales for 2014 of approximately $300 million (CHF 280 million). The debt-free price of acquisition amounts to approximately €270 million.

Similar to Siegfried, the BASF business unit concerned supplies the worldwide pharmaceutical industry and produces active pharmaceutical ingredients and intermediate products and, therefore, ideally complements Siegfried. The planned transaction comprises sites in Minden, Germany, Saint-Vulbas, France and Evionnaz, Switzerland.

Siegfried chief executive officer, Rudolf Hanko, said, “Through this acquisition, Siegfried will reach the critical size to play a leading role in the supplier market as a recognized partner for the pharmaceutical industry. This acquisition demonstrates the growth potential for the Siegfried Group.”

Synergies will be achieved in the areas of overheads, IT and procurement as well as through coordination of the global production network with the new site in Nantong, China. BASF’s pharmaceutical supply business contributes complementary technological platforms, such as azide chemistry, phosgenation and low-temperature chemistry. As a result, new customers and projects will be secured. The acquisition will make a significant contribution toward implementation of Siegfried’s one-stop strategy.

Siegfried will continue operations at the three pharmaceutical supply business sites of BASF. Following the acquisition, Siegfried will review all of its existing and new production sites with regard to resource efficiency and synergy potential in order to raise competitiveness in the medium to long range. In the new constellation, the Zofingen, Switzerland site will remain the Group’s headquarters.

This acquisition represents the final step in Siegfried’s targeted acquisition policy implemented in the last five years. In terms of this policy, Siegfried previously acquired California-based AMP and the two German companies, Hameln Pharmaceuticals GmbH and Hameln RDS GmbH. Moreover, Siegfried secured land in one of China’s most modern chemical industrial parks (Nantong) and operates a production plant there.