CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--AptarGroup, Inc. (NYSE: ATR) today announced it has signed an agreement to acquire Mega Airless, a leading provider of innovative airless dispensing systems for the beauty, personal care and pharmaceutical markets. This strategic acquisition adds complementary products and market coverage to AptarGroup’s existing diversified portfolio of business.
Under the terms of the agreement, AptarGroup will acquire Mega Airless for an enterprise value of approximately €200 million ($218 million). The purchase will be funded with available cash on hand in Europe and an existing revolving credit facility. The transaction is subject to customary regulatory approvals and is expected to close in the first quarter of this year. Mega Airless has over 30 years of experience and has grown to become a leader in airless dispensing technology with two manufacturing facilities in Germany and one in the United States. Mega Airless’ projected annual revenues for 2015 are approximately €61 million (approximately $66 million) and the company has achieved EBITDA (earnings before interest, taxes, depreciation and amortization) margins in excess of 30% over the past three years.
Commenting on the transaction, Steve Hagge, President and CEO said, “We are very pleased to announce this strategic acquisition which aligns with our disciplined approach of acquiring well-managed, profitable businesses with innovative technology. Their products and the markets they serve are complementary to our own and we see significant opportunities to leverage AptarGroup’s global network to grow this business. Today, dermal applications are growing and evolving. Regulatory agencies in the prescription and over-the-counter pharmaceutical markets, and customers in the beauty and personal care markets, are seeking better ways to control dosing and preserve formulations across a variety of products. This transaction will enable us to shape the future of airless solutions.”
AptarGroup will hold a conference call tomorrow, January 26, 2016, at 8:00 a.m. Central Time to discuss this transaction. Interested parties are invited to listen to a live webcast and download presentation materials by visiting the Investor Relations page at www.aptar.com. Replay of the conference call can also be accessed on the Investor Relations page of the web site.
AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing solutions for the beauty, personal care, home care, prescription drug, consumer health care, injectables, food, and beverage markets. AptarGroup is headquartered in Crystal Lake, Illinois, with manufacturing facilities in North America, Europe, Asia and South America. For more information, visit www.aptar.com.
This press release contains forward-looking statements. Words such as “expects,” “anticipates,” “believes,” “estimates,” “future” and other similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on management’s beliefs as well as assumptions made by and information currently available to management. Accordingly, AptarGroup’s actual results may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist including, but not limited to, the ability to complete the Mega Airless acquisition; economic conditions worldwide as well as potential deflationary conditions in regions we rely on for growth; political conditions worldwide; significant fluctuations in foreign currency exchange rates; changes in customer and/or consumer spending levels; financial conditions of customers and suppliers; consolidations within our customer or supplier bases; fluctuations in the cost of raw materials, components and other input costs; the availability of raw materials and components; our ability to increase prices, contain costs and improve productivity; changes in capital availability or cost, including interest rate fluctuations; volatility of global credit markets; cybersecurity threats that could impact our networks and reporting systems; fiscal and monetary policies and other regulations, including changes in tax rates; direct or indirect consequences of acts of war or terrorism; work stoppages due to labor disputes; and competition, including technological advances. For additional information on these and other risks and uncertainties, please see AptarGroup’s filings with the Securities and Exchange Commission, including its Form 10-Ks and Form 10-Qs. AptarGroup undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.