September 15 2020, David R Brown
IMCD to acquire Indian speciality chemicals distributor Signet
IMCD N.V. (“IMCD”), a leading global distributor of speciality chemicals and food and pharma ingredients, has announced that it has signed an agreement to acquire 100% of Signet Excipients Private Limited (“Signet”), one of the leading distributors of excipients in India. Signet is well aligned with the IMCD business model and strategy and provides a significant platform for further growth in India and the Asia-Pacific region.
As India is the largest supplier of generic medicines globally, it is our ambition for our pharmaceutical business to have a strong presence therePiet van der Slikke
CEO of IMCD
Founded in 1986, Signet grew from a small distribution company to one of the leading distributors of excipients in India. It focuses on the distribution of pharmaceutical, nutraceutical and bio-pharma excipients across categories such as diluents, fillers, sweeteners, disintegrants, binders, surfactants and others. Based in Mumbai, Signet is also active in India, Bangladesh, the Middle East and Africa. With approximately 100 employees, Signet generated revenue of INR 13.2 billion (ca. EUR 152 million) in the last twelve months up to and including June 2020, and realised a normalised EBITA of INR 3.4 billion (ca. EUR 39 million).
With its asset light business model and long-term relationships with leading tier 1 global excipient producers, the acquisition of Signet by IMCD is an important step in IMCD's strategy to become a leading global speciality pharma ingredient distributor. Furthermore it significantly strengthens IMCD's presence in India and increases IMCD's position in the high-growth APAC region.
Piet van der Slikke, CEO of IMCD commented: “As India is the largest supplier of generic medicines globally, it is our ambition for our pharmaceutical business to have a strong presence there. Hence, I am pleased that Signet and IMCD will now join their activities in India, Bangladesh, the Middle East and Africa.”
The transaction will take place in two tranches, with IMCD now acquiring 70% of the share capital from the founders and the remaining 30% by 2024. The transaction is expected to have high single digit cash EPS accretion in the first full year post acquisition. The founders of Signet will continue to lead the company post completion of the first tranche. The closing of the transaction is subject to customary closing conditions and regulatory approval, and is expected to take place in the last quarter of 2020.
About IMCD N.V.
IMCD is a market-leader in the sales, marketing and distribution of speciality chemicals and food ingredients. Its result driven professionals provide market-focused solutions to suppliers and customers across EMEA, Asia-Pacific and Americas, offering a range of comprehensive product portfolios, including innovative formulations that embrace industry trends. Listed at Euronext, Amsterdam (IMCD), IMCD realised revenues of EUR 2,689.6 million in 2019 with more than 2,990 employees in over 50 countries on 6 continents. IMCD's dedicated team of technical and commercial experts work in close partnership to tailor best in class solutions and provide value through expertise for around 49,000 customers and a diverse range of world class suppliers.
Source(s): IMCD Press Release