Sartorius will combine its Biotechnology Division with Stedim Biosystems with the goal of becoming the market leader in single-use tools. For Euro 43 per Stedim share, Stedim will become a majority owner of the combined company, which will be called Sartorius Stedim Biotech.
"This transaction significantly accelerates our strategy to offer customers fully integrated solutions for next-generation biopharmaceutical manufacturing,” Joachim Kreuzburg, CEO and chairman of Sartorius’ executive board. “Our two companies' product array, technology platforms, and regional strengths are highly complementary. Therefore, we are a perfect match.”
Stedim pioneered disposable bag systems for biopharmaceutical applications, according to Sartorius. “Given the strong double-digit growth rates in the biopharmaceutical markets and the shift in our markets toward disposable solutions, this is the ideal time for our Biotech Division and Stedim to come together," Kreuzburg pointed out.
Stedim also has a product segment consisting of door systems for aseptic transfer technology and a unique freeze-thaw technology. In 2006, Sartorius reports, the company earned Euro 91.4 million in sales, 44% generated in North America.
"Once combined,” remarks Bernard Lemaitre, chairman of Stedim, “Sartorius Biotechnology and Stedim have the realistic ambition of forming a worldwide market leader for single-use based technologies over the next five years. No other group can offer the biopharmaceutical market such a broad range of solutions."
The transaction is expected to be completed in summer 2007. The companies report that on a pro forma basis, Sartorius Stedim Biotech is expected to generate Euro 400–420 million in sales. The CAGR for 2007 to 2011 is projected at 14% to 15%.