OR WAIT null SECS
Gerresheimer sells its glass tubing manufacturing operations to focus on pharmaceutical packaging business.
Gerresheimer announced on June 30 that it would sell its borosilicate glass tubing business to Corning Incorporated and focus on packaging solutions for its pharmaceutical customers. The companies will enter into a 10-year-supply agreement for borosilicate glass tubes that secures Gerresheimer’s high demand for glass tubing, the company reports.
In addition, both companies will establish a joint venture to accelerate innovations for the pharmaceutical glass packaging market. Corning will hold a 75% stake in the joint venture, Gerresheimer 25%.
Gerresheimer manufactures glass tubing as an intermediate product for its own plants, where those tubes are used to manufacture ampoules, vials, cartridges, and glass syringes. To a lesser extent Gerresheimer sells tubing to external customers.
Upon closing, Corning will assume ownership of the Gerresheimer tubing plants in Vineland, NJ and Pisa, Italy with approximately 300 employees.
The sale proceeds are approximately EUR 196 M on a debt-free basis. The sale is expected to close by the end of 2015.