The logo is visible at the Sulzer Mixpac AG plant of the Swiss engineering group Sulzer AG in Haag, Switzerland, on 5 July 2019. REUTERS / Arnd Wiegmann
ZURICH (Reuters) – Sulzer (SUN.S) said on Monday that it will purchase drug delivery device manufacturer from Switzerland to Germany Haselmeier for a company value of 100 million euros ($ 118 million) to increase its applicator systems business which was damaged by a collapse that preceded the COVID-19 pandemic.
Haselmeier, a private company that makes self-injection pens for reproductive health, growth disorders, osteoporosis and diabetes, employs 230 people and had sales of € 36 million in 2019, Sulzer said in a statement.
Sulzer’s applicators division manufactures adhesive devices for the beauty, automotive and healthcare industries.
It had faced headwinds even before the pandemic, with sales down 7% in 2019 to 425 million Swiss francs ($ 466.06 million), damaged by disruptive trends in the beauty segment, where Sulzer makes mascara products and makeup.
In the first half of 2020, the trend intensified as applicator systems saw a sharp drop in orders of 27.3% and a drop in sales of 21% due to the closure of beauty shops and dental offices.
Girts Cimermans, appointed in 2019 to head the division, is now looking to strengthen the health side of the business with the Haselmeier deal that he sees as a potential growth engine. The transaction is expected to close on October 1st.
“Haselmeier has a successful track record of delivering innovative drug delivery devices based on its proprietary IP business model,” said Cimermans.
“We believe we will add to the success story by providing financial strength and precision injection molding capabilities, thereby accelerating the company’s growth.”
John Miller reporting; edited by Thomas Seythal and Subhranshu Sahu