Hemel drugs company agrees £505m takeover by Swedish rival
A Hemel Hempstead-based maker of drug delivery devices has agreed a £505 million takeover by a Swedish rival.
Consort Medical saw its share price pop after the company, which makes drug delivery devices such as nasal inhalers, said it had accepted the big-money takeover from Recipharm.
Consort, headquartered in Breakspear Park, is a contract development and manufacturing organisation (CDMO), meaning it provides services for other pharmaceutical groups.
The offer was unanimously recommended by the board.
Jonathan Glenn, chief executive of Consort, said the takeover would "enhance" the group's Bespak and Aesica businesses.
"We believe that customers of both businesses will value the offering and enhanced scale of the combined business," he added.
Consort has a 2,000-strong workforce, 1,400 of which are located across bases in Hemel Hempstead, Cambridge, King's Lynn, Milton Keynes, Queenborough, Cramlington and Nelson. The group also has operations in Germany and Italy.
Thomas Eldered, chief executive of Recipharm, said: “I am excited at the prospect of combining Recipharm with Consort, which is extremely complementary.”
"In our view Bespak is already acknowledged as a leading drug device developer and manufacturer and is a perfect fit for Recipharm's broader pharmaceutical capabilities."
"The enlarged group will be able to provide finished dose forms in Bespak's key technologies, and provide customers with a far more integrated approach."