Sartorius has signed an agreement acquiring the control of Stedim , and will will combine its biotechnology division with Stedim to create a leading technology provider for biopharmaceutical industry
Under the terms of this agreement, Sartorius acquires a substantial stake in Stedim and combines its Biotechnology Division with Stedim's business.
Sartorius will pay euro43 per share.
Upon completion of this transaction, Sartorius will become Stedim's majority owner controlling the combined company.
Through the combination of the Sartorius and Stedim biotech businesses, Sartorius is substantially strengthening its position as a technology provider to the fast growing biopharmaceutical market.
Stedim's board supports this deal.
The overall transaction, which is subject to approval by Stedim's shareholders and to regulatory clearance, is expected to be completed in summer 2007.
The combined company will be named Sartorius Stedim Biotech.
French-based Stedim is the pioneer for disposable bag systems for biopharmaceutical applications.
Besides being a market leader in this segment, Stedim also has a product segment consisting of door systems for aseptic transfer technology and a unique proprietary freeze-thaw technology.
Both of these technologies offer significant growth potential in the biopharmaceutical industry.
In 2006, the company earned euro91.4million in sales, 44 percent of which were generated in North America.
Stedim employs some 540 persons at its locations in France, the USA, and Tunisia.
Joachim Kreuzburg, CEO and chairman of the executive board of Sartorius, commented: "This transaction significantly accelerates our strategy to offer customers fully integrated solutions for next generation biopharmaceutical manufacturing.
"It brings together two passionately innovative technology leaders who both have a strong customer base and who share a common vision.
"Our two companies' product array, technology platforms and regional strengths are highly complementary; therefore, we are a perfect match.
"Through this transaction, Sartorius is taking the next logical step in our company's development for the benefit of our customers, employees and shareholders.
"Given the strong double-digit growth rates in the biopharmaceutical markets and the shift in our markets toward disposable solutions, this is the ideal time for our biotech division and Stedim to come together".
Bernard Lemaitre, chairman of Stedim, stated: "It is important to stress that each of the two companies brings a leading market position to this project.
"In this context, Stedim is a global leader in disposable bag systems and freeze-thaw technology.
"In establishing this alliance between two companies focused on the same customers and with complementary product portfolios, our first objective will be to implement a strategic and an industrial project with an impact much greater than the sum of the two parts.
"Once combined, Sartorius Biotechnology and Stedim have the realistic ambition of forming a worldwide market leader for single-use based technologies over the next five years.
"No other group can offer the biopharmaceutical market such a broad range of solutions."
