Qualicaps gets Latin American foothold with acquisition of Brazil's Genix

Capsulemaker Qualicaps is adding another country, and another continent, to its manufacturing network. It has secured a spot in Brazil with the acquisition of a capsulemaker there.

Courtesy of Genix

Qualicaps says it has bought out Genix Industria Farmaceutica, a 13-year-old capsulemaker with a plant in Goais and sales operations in São Paulo. With the deal Qualicaps says it will become the leading capsulemaker in Brazil and the only one with a plant in that country. Terms of the buyout were not disclosed, but Qualicaps says Genix holds half the market share for hard capsules in the country.

Qualicaps intends to use Genix as launching pad into the Latin American market. Citing IMS, it says that market reached $72 billion in sales in 2014 and is estimated to grow annually at an average of 5% to 8% through to 2019. With the buyout, Qualicaps now has operating sites in Japan, Spain, Romania, Canada, the U.S. and Brazil.

Qualicaps became part of Mitsubishi Chemical Holdings in 2013, when the Japanese company bought it from the Carlyle Group ($CG) for $650 million. Qualicaps also owns capsule equipment manufacturer Technophar, which supplied the Genix facility with its production technology and equipment.

- read the announcement