Belgium's Arseus buys US firm Gallipot for around $12.5 million

Belgium's Arseus say it has entered into a definitive agreement to acquire the US company Gallipot, a leading supplier of raw materials for pharmaceutical compounding to pharmacies in the USA. It is anticipated that the transaction, exact financial terms of which were not disclosed, will close at the end of May 2010.

Gallipot has grown strongly in recent years, generating a turnover of about $12.5 million and an EBITDA margin in line with that of Arseaus' Fagron unit. The Belgian company's chief financial officer, Jan Peeters, said Arseus paid a little more than one times sales for Gallipot, which will be consolidated effective April 1, and will contribute to Arseus' earnings per share in 2010.

Ger van Jeveren, chief executive of Arseus, commented: 'In only one decade Fagron grew from a local player to the European market leader and is now taking the role as the global consolidator in the fast growing niche market of pharmaceutical compounding. In the past year Fagron further optimized operational excellence and prepared the internal organization for the expansion of the proven and profitable strategy of Fagron to other continents.'