NEWS
IN BRIEF
F & F buy for Azelis
Azelis has acquired BLH , a French distributor of flavours and fragrances that is focused on fine perfumery , from the Bécot family . BLH employs 42 and has a laboratory in the Grasse region . It has about 400 customers , including major players in the perfume industry . CEO Nicolas Bécot will stay on to ensure a successful integration . The transaction should close within November .
Arclin acquires Belle Arclin , a Georgia-based specialist in polymer technologies and engineered products for diverse industrial applications , has acquired Belle Chemical , a methylamines and derivatives producer in Belle , West Virginia . Arclin described the buy as a key step in its strategy of “ expanding its product presence into markets that are adjacent to its core chemistries and business ”.
Three-cluster system Biesterfeld Spezialchemie is concentrating its business into the three ‘ overarching clusters ’ of Industrial , Consumer and Healthcare under newly created global business directors in Dr Jacek Polewski , Bettina Heick , and Dr Andreas Lekebusch and Hartmut Zeller respectively . The company said that this “ will strategically drive forward its worldwide market and sales growth ”.
Further into flow Italian CDMO Flamma is to add a Corning G4 Microreactor to its continuous flow capabilities , following the installation in July of a new suite of equipment from Microinnova . The combination , Flamma said , will provide a flow plant that can achieve conditions to 16 bar , up to 145 ° C , up to 30 L / hour and 50 tonnes / year . Installation is under way with qualification batches set for February 2024 .
Suven deal is done
Private equity investor Advent International has completed the acquisition of 50.1 % stake in Indian CDMO Suven Pharma for $ 5.95 / share , as originally agreed in December 2002 . This will shortly trigger an open offer for the 26 % that is not being retained by the founding Jasti family .
The move follows approval by the Cabinet Committee on Economic Affairs in August . Advent ’ s stated plan is “ to foster Suven ’ s capabilities to help it become one of the leading companies in the CDMO space globally ” with $ 1 billion / year in sales . As part of this , it will evaluate merging Suven with its portfolio company , Cohance Lifesciences .
Suven Pharma , which was demerged from its parent entity , Suven Life Sciences , in 2020 , carries out most of its business with innovators and follows the customer from Phase I to commercialisation . It claims a strong pipeline of Phase III and late Phase II molecules , with over 100 active projects . Sales and EBITDA margins have grown by over 20 % and over 43 % in the last four years .
A new management team has been named , with Annaswamy Vaidheesh as executive chairman , V . Prasada Raju as managing director and Sudhir Kumar Singh as CEO . In addition , Brian Shaughnessy , formerly with Aragen , Dr Reddy ’ s and Piramal among others , has been recruited as chief commercial officer . Others with experience of the North American and European markets will also be added as Advent seeks to extend Suven ’ s reach in global markets .
“ Suven already works with nine of the largest 15 pharma companies worldwide , supplying them mostly with registered starting materials and intermediates but also blockbusters ,” said Shaughnessy , who was speaking with SCM at CPHI Barcelona on 25 October .
“ It never had a commercial team as such before but I have already heard a lot of positive feedback from customers regarding delivery and reliability as a supplier . We will be seeking to bring more robustness and efficiency to the systems and to enhance brand awareness through messaging . The strategy will continue to be focused on Big Pharma and from late-stage R & D to commercialisation .”
Ashland to sell unit
During its Q4 earnings update , Ashland announced plans for a series of “ portfolio optimisation actions to further strengthen the company ’ s resilience and improve margins and returns in this uncertain environment ”. These are expected to improve adjusted EBITDA margins by about 2 % and returns on net assets by 1.5-2 %.
The company will divest its nutraceuticals business , which is not core to its business model or longer-term strategy . It will also optimise and consolidate the carboxymethyl cellulose and methyl cellulose industrial businesses and related capacity to improve productivity and mix , repurposing the impacted assets for other uses , and optimise the hydroxyethyl cellulose manufacturing network for greater efficiency .
These changes are expected to reduce sales by $ 200-225 million / year , while reducing volatility , improving focus and decreasing both working capital and maintenance capital expenditures . Ashland also plans to take actions to fully offset the approximately $ 100 million of stranded costs and lost gross profit that is expected to result .
At the same time , the company plans to increase its investments and resources for the core growth businesses consistent with the ‘ Globalise & Innovate ’ strategy that it outlined at its latest Innovation Day . During fiscal year 2024 , it plans to deploy an incremental $ 4-6 million in commercial and technical resources to support this growth .
8 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981