Pharmaceutical company Probiotic (ASX: PBP) has increased its manufacturing footprint with the purchase of Sydney packaging company ABS, formally Australian Blister Sealing.
Probiotic paid $23 million for the 40-year-old Seven Hills company which provides contract packaging services for the pharmaceutical and food sectors, including bottle filling, labeling and blister packaging.
Probiotic managing director, Wes Stringer said the aquisition continued the company’s strategy of increasing its manufacturing footprint, scale and reach.
Probiotic bought South Pack Laboratories in 2017.
Stringer said: “We we are excited to continue to grow our footprint in the pharmaceutical industry.
“We expect the combination of Probiotic’s significant strength in contract manufacturing to provide benefits, synergies and opportunities for all three entities.”
Probiotic, which makes, packs and distributes prescription and over the counter pharmaceuticals and complementary medicines for major pharmaceutical companies, will fund the purchase internally.
The company pointed to expansion opportunities at the Seven Hills plant.
Probiotic also advised the market that its earnings before interest, tax, depreciation and amortisation this year would be around $9.0 million, up from $7.5 million in the prior year.
Turnover in the 2020 year would exceed $100 million, with an EBITDA of between $16 million and $17 million.
Chairman Geoff Pearce said: “We are pleased the company has executed its stated strategy of divesting non-core assets, organically growing our core business, and strategically deploying capital.
“We continue to build momentum.”
Subscribe to our free @AuManufacturing newsletter here.