By John Miller
ZURICH (Reuters) - Sulzer (S:SUN) said on Monday it would buy Swiss-German drug delivery device maker Haselmeier for an enterprise value of 90.1 million pounds ($118 million) to boost its applicator systems business that has been hurt by a slump that preceded the COVID-19 pandemic.
Privately held Haselmeier, which makes self-injection pens for reproductive health, growth disorders, osteoporosis and diabetes, employs 230 people and had sales of 36 million euros in 2019, Sulzer said in a statement.
Sulzer's applicators division makes devices for adhesives for the beauty sector, car industry and healthcare.
It had been facing headwinds even before the pandemic, with sales shrinking 7% in 2019 to 425 million Swiss francs ($466.06 million), hurt by disruptive trends in the beauty segment, where Sulzer makes products for mascara and make-up.
In the first half of 2020, the trend intensified as applicator systems saw an abrupt drop in order intake of 27.3% and a sales decline of 21% as beauty outlets and dental practices were forced to close.
Girts Cimermans, named in 2019 to lead the division, is now seeking to build up the healthcare side of the business with the deal for Haselmeier that he sees as a potential growth driver. The transaction is expected to close on Oct. 1.
"Haselmeier has a successful track record of providing innovative drug delivery devices based on its proprietary IP business model," Cimermans said.
"We believe that we will add to the success story by providing financial strength and precision injection molding capabilities, thereby accelerating the company's growth."