Packaging group Clondalkin has bought an American rival for close to €30 million, the company said yesterday.
Clondalkin, which is now headquartered in Amsterdam, announced yesterday that it has bought Pharmagraphics, an American specialist in pharmaceutical packaging.
The firm paid $35.5 million (€29 million) for the business.
Clondalkin said that the new acquisition would become part of the Irish company's specialist packaging division, which supplies customers in Europe and North America.
Pharmagraphics supplies specialised products to the drugs and healthcare industries in the US, Canada, Latin America and eastern Europe.
It has manufacturing operations in the US, Canada, Puerto Rico and Poland.
Clondalkin finance director Colman O'Neill said that Pharmagraphics would be a good fit with its existing pharmaceutical division, which is also active in the US and Poland, as well as Ireland, the Netherlands and the UK.
"Pharmagraphics is at the high value end of the market," he said. "They have a range of sophisticated products that are similar to our own in that sector.
"We already have a significant interest in the pharmaceutical packaging business through Guy and Company," he added.
While Clondalkin already has substantial business in North America, the Pharmagraphics deal is the first such acquisition in that part of the world since US venture capital group Warburg Pincus bought the Irish plc in 2004 and took it private.
Clondalkin chief executive Norbert McDermott said that the move demonstrated the company's commitment to delivering growth through acquisition and by developing its existing businesses.
John Fitzgerald, chief executive of Clondalkin's specialist packaging division, predicted that the move would open up fast growing markets and new regions to the company.
Pharmagraphics chief executive Carl Treleaven said joining Clondalkin would allow the company to develop a broader product range.
Clondalkin has moved its headquarters to Amsterdam, but it still maintains a presence in this country. Yesterday, Mr O'Neill said that over 60 per cent of its business now comes from Europe, while Ireland generated around 6 per cent of sales.
