Sulzer AG (OTC:SULZF) announced Monday it is purchasing Swiss-German drug delivery device company Haselmeier for $118 million.
What Happened: Sulzer said the acquisition will boost its own healthcare portfolio, and Haselmeier’s expertise in precision injection molding can help it grow in the drug delivery devices market, according to a company-issued statement.
Haselmeier employs 230 people and recorded sales of $45.5 million in 2019. The company is a provider of devices such as subcutaneous self-injection pens used for reproductive health, growth disorders, osteoporosis, and diabetes.
Why It Matters: Sulzer’s applicator systems business has been severely affected due to the COVID-19 pandemic, according to the company.
The applicators division manufactures devices for adhesives in the beauty sector, car industry, and healthcare.
In June, Sulzer announced it was acquiring 25% of Tamturbo Plc, a Finnish company that makes oil-free air compressors. A month later, the company’s CEO Greg Poux-Guillaume said the company had a “very strong balance sheet” and could spend up to $1.5 billion on deals.
“We have a bit of firepower to make acquisitions,” Poux-Guillaume said at the time, as per Reuters.
Price Action: Sulzer OTC shares closed 5.11% lower at $84.45 on Friday.
Photo courtesy: Sulzer AG via Wikimedia