The Gerresheimer Group has taken over substantial parts of the business of Glass Group Inc. (GGI) in the USA. The acquisition comprises both the container glass works in Millville, New Jersey, which s…
The Gerresheimer Group has taken over substantial parts of the business of Glass Group Inc. (GGI) in the USA. The acquisition comprises both the container glass works in Millville, New Jersey, which specialises in pharmaceutical packaging and has sales of around USD 55 million, and its 45.7% share in the Chinese specialty glass manufacturer Beijing Wheaton. The purchase “marks a quantum leap on the way to establishing our Group as a leading worldwide supplier of pharmaceutical packaging,” says Dr. Axel Herberg, CEO and President of the Gerresheimer Group. Glass Group Inc., a past competitor in the pharmaceutical glassware business in the USA, was forced to file for protection under Chapter 11 US Bankruptcy Code at the end of February 2005 and thus became available for purchase. The price paid for the assets now acquired totalled around USD 20 million. The deal is expected to close by the 27 September 2005. Through the acquisition, Gerresheimer has expanded its presence in the US market to encompass the whole pharmaceutical glassware spectrum. In the past, the group had a strong lead in the field of tubular glass and pharmaceutical packaging produced from it, while in the field of container glass for pharmaceuticals, the group previously had only one plant in the American market. The plant in Millville now makes Gerresheimer the leader in the USA for pharmaceutical container glass, the company said. Because of its high quality requirements, pharmaceutical glassware is generally regarded as a high-profile and particularly attractive market segment. The new Millville plant has three furnaces and 350 employees. In addition to Millville, Gerresheimer has five production plants in its American subsidiary Kimble Inc. plus one plant in Mexico. The acquisition of shares in Beijing Wheaton in China is also of strategic importance for Gerresheimer. The investment offers “an excellent starting base to establish a foothold in the Asian market and rise to become an important player in the region,” says Herberg.