Crystal Lake, Illinois – US-based AptarGroup Inc. is expanding its manufacturing footprint in China with the acquisition of a ‘leading’ rubber and plastics medical components manufacturer.
The US group announced 28 July that it had entered into an agreement to acquire an 80% share in Weihai Hengyu Medical Products Co. Ltd, a manufacturer of elastomeric and plastic components used in injectable drug delivery.
This acquisition, it said, supports Aptar’s strategic priority to strengthen capabilities in high-growth economies such as China.
Furthermore, it enhances the group’s ability to respond to changing local market needs, by providing “regional manufacturing, a well-integrated supply chain and close proximity to customers and their patients.”
“This majority equity investment is a strategic step that strengthens our competitive position in Asia and in the high-growth injectable drug delivery market,” said Stephan Tanda, Aptar president and CEO.
Describing the acquisition as a “critical milestone” in Aptar’s strategy in Asia, Aptar Asia president Xiangwei Gong said the group was targeting growth in all core markets including the injectable drug delivery market.
“We expect strong and long-term sustainable growth in this critical application field in Asia as more and more patients are prescribed medications in an injectable format.”
Located in Weihai, a coastal city in Shandong Province of eastern China, Hengyu designs and manufacturers elastomeric and plastic components used in delivering injectable drugs.
Hengyu was founded in 1998 and has approximately 150 employees at its facility in Weihai.
Under the terms of the agreement, Aptar will have the option to acquire the remaining 20% of the equity of Hengyu upon the fifth anniversary of the closing of the initial majority equity investment.
The transaction is subject to customary regulatory approvals and is expected to close by the end of the third quarter of 2021.