BRUSSELS: Belgian pharmaceutical compounding firm Fagron said on Monday it had acquired the business of Poland’s Amara and Hungary’s Magilab to strengthen its position in the EMEA region, part of a strategy to diversify in dynamic markets.
The company also said it had secured a new $225 million U.S. credit facility and received a key regulatory license for its sterile services plant in Boston, highlighting a multi-pronged approach to fuel growth in North America.
The two acquisitions, with a combined purchase price of approximately 26 million euros, are expected to contribute mid-teens million euros in annual revenue at an EBITDA margin above the group’s existing level, Fagron said.
“These acquisitions are key steps in consolidating our leadership in EMEA’s dynamic markets,” said Chief Executive Officer Rafael Padilla.
The deals mark Fagron’s ninth and tenth acquisitions this year, underscoring what the company describes as its “disciplined serial acquirer” track record.
Amara, a player in Poland’s compounding raw materials market with over 30 years of experience, will enhance Fagron’s offering in the country. Magilab, a specialized brand in Hungary’s hospital pharmacy segment, will consolidate Fagron’s position in a market with high compounding per capita.
North American Expansion
Separately, Fagron announced a new credit facility with PGIM for up to $225 million with maturities of up to 15 years. An initial $125 million has been drawn, providing what the company called “attractive terms” to fund its growth ambitions and robust merger and acquisition (M&A) pipeline in North America.
In a regulatory win, the company’s Fagron Sterile Services (FSS) facility in Boston received a license from the California State Board of Pharmacy. This permit allows it to ship compounded medications to California, one of the largest and most tightly regulated healthcare markets in the United States.
“This will allow us to fully integrate our FSS operation in the U.S. while reinforcing our presence… and unlock significant opportunities with new customers,” Padilla said.
Following this license, all of Fagron’s 503B outsourcing facilities in the U.S. are now entitled to ship to California.
Fagron, listed on Euronext Brussels and Euronext Amsterdam, is a global leader in pharmaceutical compounding, which involves the preparation of personalized medication for patients.