China Jianyin Investment Ltd. (“JIC”), a long-term investor, enters into exclusive discussions with Oaktree to acquire SGD Pharma. SGD Pharma, a company owned by funds controlled by Oaktree, is a global leading producer of primary glass packaging for the pharmaceutical industry.
Headquartered in Paris La Défense (France), SGD Pharma manufactures molded and converted primary glass packaging for the pharmaceutical industry with an expertise developed for more than 100 years. Following Oaktree's acquisition in 2010, SGD Pharma, was able to expand its leadership in high end type I glass containers, supported by its new production site in Saint Quentin, and develop a new offer in the conversion market thanks to the acquisition of the Indian market player Cogent Glass.
Further to the completion of the demerger of the perfumery glass packaging operations in 2015, SGD Pharma is now focused on products dedicated to the largest pharmaceutical companies worldwide. The company operates five manufacturing sites in France (two plants), Germany, India and China and employs 2,750 people across the globe.
JIC notably benefits from a successful track-record of investments in industry sector leaders, and is keen to work along with SGD Pharma’s management to implement the group’s long-term strategy and operational excellence plan, as well as to further develop its high quality product portfolio and leverage its know-how. JIC has an in-depth understanding of SGD Pharma’s development plans and will support the significant investments across industrial facilities to enhance its production capacities, and to grow its business worldwide sustainably.
Jürgen Sackhoff, President, SGD Pharma, commented: "We are keen to welcome JIC as our proposed new shareholder, as they are a long-term investor which fits extremely well with our business model and strategic roadmap. Moreover, the combination with JIC will open us exciting new growth opportunities in Asia. All of this will benefit our employees in France and across the globe, our customers and partners. As a conclusion, I am very excited about the future of SGD Pharma with JIC being the new shareholder. I also thank Oaktree for their support to develop SGD Pharma into a standalone company.”
The proposed transaction will be submitted to the relevant workers’ council of SGD. It will be subject to competition and other regulatory approvals.
Oaktree is advised by J.P. Morgan and Lazard on financial matters and by Weil, Gotshal & Manges on legal matters. JIC is advised by Rothschild on financial matters and by Bredin Prat on legal matters.
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About SGD Pharma
The French company SGD Pharma is the world leading manufacturer of primary glass packaging and containers for the pharmaceutical industry. SGD Pharma produces more than 2bn of glass containers per year and recorded revenues of €290m in 2015. SGD Pharma relies on its unique know-how in the pharmaceutical molded and converted glass industries and 5 manufacturing sites entirely dedicated to pharmaceuticals located in France, Germany, India and China. SGD Pharma currently employs 2,750 people around the world. For additional information, please visit SGD Pharma’s website at http://www.sgd-pharma.com/.
About China Jianyin Investment Ltd.
Established in 2004, China Jianyin Investment Ltd. is an integrated investment group focusing on equity management and industrial management. With $57 billion in assets under management and 15,000 employees by the end of 2015, JIC is a long-term investor with major businesses operating across fields including finance, investment, manufacture, real estate, cultural services, etc. For additional information, please visit JIC’s website at http://www.jic.cn/.
About Oaktree
Oaktree Capital Management, L.P., together with its affiliates (“Oaktree”), is an investment company listed on the NYSE with $97bn of assets under management as of March 31, 2016. Oaktree invests globally in a variety of assets ranging from debt instruments to private equity. Oaktree is comprised of over 900 employees with offices located in 18 cities worldwide. Oaktree has been active in private equity since 1994. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.