) has completed the acquisition of Stelmi Group, thereby expanding
its offerings in the pharmaceutical industry. The company has also
lowered its guidance for the second quarter.
In May this year, the company had signed an agreement to acquire
France-based Stelmi for approximately 165 million euros ($207
million). Stelmi makes elastomer primary packaging components used
for injectable drugs. It operates two manufacturing plants located
in the Normandy region of France and has a Research and Development
center near Paris.
In 2011, Stelmi generated revenues of 83 million euros ($104
million) and earnings before interest, taxes, depreciation and
amortization (EBITDA) margins in the range of 21-25% over the past
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AptarGroup for its part lowered the fiscal 2012 second quarter
earnings per share guidance to a range of 60 cents to 62 cents from
the previous guidance of 70 cents to 75 cents. This is to reflect
acquisition costs of 5 cents per share related to the Stelmi
acquisition as well as weak sales volume in the company's European
operations and strengthening of the U.S. dollar compared to the
Euro (a negative impact of 2 cents per share). The Zacks Consensus
Estimate for the quarter is currently pegged at 67 cents.
The Stelmi acquisition fits with Aptar's strategy to enter new
markets and applications, and to look for opportunities in the
pharmaceutical and biotech industries. This acquisition marks
Aptar's foray in a new area of primary packaging components used in
the injectable drug delivery market.
Crystal Lake, Illinois-based AptarGroup supplies a broad range of
innovative dispensing systems for the fragrance/cosmetic, personal
care, pharmaceutical, household and food/beverage markets
worldwide. The company has its manufacturing facilities in North
America, Europe, Asia and South America. It competes with
). The stock currently has a Zacks #3 Rank (short-term Hold