China Jianyin Investment Ltd. (“JIC”), a long-term investor, has announced its entry into exclusive discussions with Oaktree to acquire SGD Pharma.
SGD Pharma, a company owned by funds controlled by Oaktree, is a global leading producer of primary glass packaging for the pharmaceutical industry.
Based in Paris La Défense (France), SGD Pharma has manufactured molded and converted primary glass packaging for the pharmaceutical industry with an expertise developed for more than 100 years. Following Oaktree’s acquisition in 2010, SGD Pharma, was able to expand its leadership in high end type I glass containers, supported by its new production site in Saint Quentin, and develop a new offer in the conversion market thanks to the acquisition of the Indian market player Cogent Glass.
Further to the completion of the demerger of the perfumery glass packaging operations in 2015, SGD Pharma is now focused on products dedicated to the largest pharmaceutical companies worldwide. The company operates five manufacturing sites in France (two plants), Germany, India and China and employs 2,750 people across the globe.
JIC notably benefits from a successful track-record of investments in industry sector leaders, and is keen to work along with SGD Pharma’s management to implement the group’s long-term strategy and operational excellence plan, as well as to further develop its high quality product portfolio and leverage its know-how. JIC has an in-depth understanding of SGD Pharma’s development plans and will support the significant investments across industrial facilities to enhance its production capacities, and to grow its business worldwide sustainably.
Jürgen Sackhoff, President, SGD Pharma, commented: “We are keen to welcome JIC as our proposed new shareholder, as they are a long-term investor which fits extremely well with our business model and strategic roadmap. Moreover, the combination with JIC will open us exciting new growth opportunities in Asia. All of this will benefit our employees in France and across the globe, our customers and partners. As a conclusion, I am very excited about the future of SGD Pharma with JIC being the new shareholder. I also thank Oaktree for their support to develop SGD Pharma into a standalone company.”
The proposed transaction will be submitted to the relevant workers’ council of SGD. It will be subject to competition and other regulatory approvals.
Oaktree is advised by J.P. Morgan and Lazard on financial matters and by Weil, Gotshal & Manges on legal matters. JIC is advised by Rothschild on financial matters and by Bredin Prat on legal matters.