Sep 15, 2020
17:42 CET - Rotterdam, the netherlandsCorporate
IMCD to acquire Indian speciality chemicals distributor Signet
IMCD N.V. (“IMCD” or the “Company”), a leading global distributor of speciality chemicals and food and pharma ingredients, today announces that it has signed an agreement to acquire 100% of Signet Excipients Private Limited (“Signet”), one of the leading distributors of excipients in India. Signet is well aligned with the IMCD business model and strategy and provides a significant platform for further growth in India and the Asia-Pacific region.
The transaction will take place in two tranches, with IMCD now acquiring 70% of the share capital from the founders and the remaining 30% by 2024. The transaction is expected to have high single digit cash EPS accretion in the first full year post acquisition. The founders of Signet will continue to lead the company post completion of the first tranche.
With its asset light business model and long-term relationships with leading tier 1 global excipient producers, the acquisition of Signet by IMCD has a strong strategic rationale. It is an important step in IMCD’s strategy to become a leading global speciality pharma ingredient distributor and strengthens IMCD’s footprint in the high growth and resilient pharma excipient distribution market. It furthermore significantly strengthens IMCD’s presence in India and increases IMCD’s position in the high-growth APAC region.
Piet van der Slikke, CEO of IMCD commented: “As India is the largest supplier of generic medicines globally, it is our ambition for our pharmaceutical business to have a strong presence there. Hence, I am pleased that Signet and IMCD will now join their activities in India, Bangladesh, the Middle East and Africa.”
Harish Shah, founder and managing director of Signet, adds: “IMCD is an excellent partner for Signet, not only due to the similarity of our principals but moreover the culture of growth through deep market knowledge, technical innovation and highest levels of service. We look forward to being a strategic part of IMCD’s global pharmaceutical business.”
The closing of the transaction is subject to customary closing conditions and regulatory approval, and is expected to take place in the last quarter of 2020.
Piet van der Slikke (CEO) and Hans Kooijmans (CFO) will host a conference call later today, at 18:15 PM CET. The presentation used in the call and an audio replay of the call will be made available on the website www.imcdgroup.com/investors.
This press release contains information that qualifies as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.