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Fonterra To Acquire Indian Pharmaceutical Company

31 August 2011

GLOBAL - Fonterra’s pharmaceutical lactose 50/50 joint venture with Dutch dairy company Royal FrieslandCampina is further cementing its place as the world’s leading supplier of lactose excipients with an agreement to acquire an Indian pharmaceutical company.

DMV-Fonterra Excipients (DFE) has reached an agreement to acquire ingredient manufacturer Brahmar Cellulose Private Limited (BCPL), based in Cuddalore, India. BCPL manufactures ingredients used by the pharmaceutical industry to make tablets and pills.

DFE is already the world’s number one supplier of lactose excipients – used in tablets, capsules and powders for medical inhalers. DFE accounts for around half of the global sales of lactose excipients and five to 10 per cent of oral tablet excipients.

This transaction brings together two companies that develop, produce and market excipients to the pharmaceutical industry and will help reduce supply chain and formulation costs.

DFE Chief Executive Jan Jongsma says the acquisition will create a unique market position for DFE as a manufacturer and supplier of all ingredients that are most commonly used in the pharmaceutical industry.

“Long-term synergies will be achieved by combining DFE’s current global market position and sales network with Brahmar Cellulose extensive product knowledge and market position in India,” he says.

“The acquisition of Brahmar Cellulose is a further step in achieving our ambition to become a leading supplier in pharmaceutical excipients and will give a stronger base for future developments in this area”, he says.

The acquisition, which is subject to conditions including the obtaining of various regulatory consents, is scheduled to be completed in the fourth quarter of 2011.

TheCattleSite News Desk



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