Corning is acquiring Gerresheimer’s pharmaceutical glass tubing business for €196 million (about $219.6 million).
Gerresheimer is a manufacturer of glass and plastic packaging products for the pharmaceutical and healthcare industry. Corning will assume ownership of the company’s glass tubing operations in Vineland, NJ, and Pisa, Italy. As part of the deal, Corning and Gerresheimer will enter into a long-term supply agreement. In addition, the companies will form an equity venture to focus on accelerating Corning innovations for the pharmaceutical glass packaging market. The equity venture will be 75% owned by Corning.
“We think this is a tremendous opportunity to apply Corning’s unique model of innovation and operational excellence to an adjacent market, which is experiencing healthy growth,” said Wendell P. Weeks, chairman, CEO and president. “It enables us to bring revolutionary new technologies to the pharmaceutical glass packaging market with Gerresheimer, a long-standing leader in the industry. There are also a number of near-term cost synergies with our global melting and forming operations as well as future sales synergies with our existing Life Sciences customers.”
