Prescription and over the counter pharmaceuticals manufacturer Probiotec has purchased co-packing services provider Multipack-LJM, positioning itself as one of the country’s largest contract manufacturing and product packing businesses.
Probiotec is paying $52.5 million for Multipack, which provides an extensive range of co-packing services for food and beverage, personal care and household and pharmaceutical companies.
The company has paid $32.4 million cash, $7 million in Probiotec shares, and will pay a further $13.2 million over two years.
Probiotec will gain a national footprint of modern facilities, access to new customers, and reap consolidation benefits from the acquisition.
Multipack’s customers include Nestle, Reckitt Benckiser and Church and Dwight, generating revenues of $70 million and an EBITDA of $12.6 million in the year to 30 June, 2020.
Probiotec is also actively considering further acquisition opportunities in both manufacturing and packing.
Probiotec CEO Wes Stringer said the acquisition was the next step in the evolution of the company.
Stringer said: “This acquisition will give us significant critical mass and access to an amazing spread of global clients to offer our wide range of manufacturing and packaging services.”
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