Naturex, manufacturer and marketer of plant extracts, announced the acquisition of Italian company Hammer Pharma (Milan, Italy), which specializes in the R&D and production of plant extracts for the pharmaceutical and nutraceutical industries. Hammer Pharma generated revenues of €7.8 million in 2006. The cost of this acquisition is €10 million, and Naturex will finance €6 million of this transaction in cash and the other €4 million through company debt.
Hammer Pharma is authorized by the Italian Ministry of Health to produce pharmaceutical ingredients and has also complied EDMF (European Drug Master File) files for the main plant extracts that it produces. These files authorize the integration of the extracts in finished pharmaceutical products. In addition, the acquisition of Hammer Pharma will give Naturex and additional industrial facility of 270,000 square feet with the capacity to extract over 3,500 tons of raw materials each year.
Of the acquisition, Naturex CEO Jacques Dikansky said, “As Hammer Pharma is ideally located at the heart of one of Europe’s key industrial zones, the acquisition affords Naturex another strategic location and will reinforce the group’s positioning on the German and Italian markets, which rank amongst the highest in Europe, and in which Hammer Pharma is a player. Moreover, with the acquisition of Hammer Pharma, the pharmaceuticals sector will constitute a new area of development for Naturex.”