The acquisition of Multipack-LJM will enable Probiotec to become one of Australia’s leading pharmaceutical contract manufacturer and contract packing services provider
Probiotec has agreed to acquire Australian contract packer Multipack-LJM. (Credit: Gerd Altmann from Pixabay)
Probiotec, a manufacturer and packer of over-the-counter pharmaceuticals and complementary products, has agreed to acquire Australia-based contract packer Multipack LJM for an aggregate enterprise value of A$52.5m ($38.2m).
Under the deal, Probiotec will purchase the complete issued shares of Multipack-LJM and L.J.M. Marketing Services, which include the operations of the Multipack LJM business.
The deal includes the upfront cash payment of A$32.4m ($23.6m) and A$7m ($5m) of Probiotec shares, as well as contingent deferred consideration of A$13.1m ($9.5m) over two years.
Multipack-LJM NSW head Adam Rawson said: “It is very exciting for the Multipack-LJM business and team. We think the combination of the Probiotec and Multipack-LJM businesses will give us a world-leading manufacturing and packing platform to offer our valued customers.”
Services offered by Multipack LJM
Multipack LJM offers value-added packing services for food and beverage, consumer healthcare, cosmetics, and pharmaceutical companies.
With more than 30,000m² of warehouse capacity in Sydney and Melbourne, Multipack LJM provides clean room and cold-pack services, as well as a range of automated and manual packing solutions for large and small-run product lines.
The acquisition of Multipack-LJM is expected to help Probiotec to become one of Australia’s leading pharmaceutical contract manufacturer and contract packing services provider.
The combination of Probiotec existing Sydney packing operations and Multipack-LJM business is expected to generate sales revenue of A$100m ($72.8m).
Probiotec CEO Wes Stringer said: “The acquisition of Multipack-LJM is the next step in Probiotec’s evolution. 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 packing services.
“This is a material transaction for the group and it is very exciting to bring the Multipack-LJM business under the Probiotec umbrella. I sincerely look forward to welcoming the Multipack-LJM team to Probiotec.”
The acquisition of Multipack-LJM by Probiotec is expected to be completed by the end of this year. Salter Brothers, PwC and Arnold Bloch Leibler have advised Probiotec on the transaction.
With three manufacturing facilities in Australia, Probiotec manufactures, packs and distributes a range of prescription and over-the-counter pharmaceuticals, complementary medicines and consumer health products.