Blackmores has confirmed settlement on the acquisition of Catalent Australia’s “world class” manufacturing facility in the Melbourne suburb of Braeside.
This represents the company’s expansion into soft-gel and tablet manufacturing, with the facility, Blackmores Braeside, licensed by Australia’s Therapeutic Goods Administration as well as international regulators to produce medicines.
It is set to supply about half of the group’s tablet and capsule requirements.
The final acquisition cost includes a completion payment of $33 million paid on October 25 and a capital payment of about $20 million expected to be paid in early 2020, being the amount attributable to upgrades and expansions over the past 18 months and customary working capital adjustments.
Blackmores’ intention to acquire Catalent Australia Holding was announced in April, 2018.
“Over the past 18 months, teams from Catalent Australia and Blackmores have worked closely to ensure a seamless transition,” Blackmores CEO Alastair Symington said.
“We’ve invested in the systems and infrastructure to increase the site’s production capacity, which will support our future growth.”
According to Blackmores, the acquisition further protects the Australian origin of products across the group’s portfolio of brands, which it says are valued by consumers both in Australia and across Asia.
The move, it adds, will support the extension of product registrations across markets in Asia and underpin the group’s ingredient sustainability and traceability program.
“The facility will support the Blackmores group’s strong focus on growth and product innovation, with increased research and development capabilities, and provide greater control over production,” Mr Symington said.
“The world class product manufacturing facility and its almost 300 staff will enable the group to be more responsive to changing market conditions.”
