Gerresheimer is to sell its borosilicate glass tubing business to Corning Incorporated in a €196 million deal.
Corning will assume ownership of Gerresheimer’s tubing plants, in Vineland, New Jersey, USA and in Pisa, Italy that employs 300 people.
Gerresheimer described its tubing business as second in the global pharmaceutical tubing market with FY 2014 revenues of €83m.
Gerresheimer and Corning will also enter into a 10-year-supply agreement for borosilicate glass tubes that will secure Gerresheimer’s demand for glass tubing.
Glass tubing is an intermediate product that Gerresheimer manufactures mainly for its own plants, where the tubes are used to manufacture ampoules, vials, cartridges and glass syringes.
It also sells tubing to external customers but on a small scale.
Both companies will also establish a joint venture to accelerate innovations for the pharmaceutical glass packaging market.
“We will focus on our core competency of developing and manufacturing primary packaging solutions and delivery devices serving our pharma customers needs.
“Corning is an expert in the field of material sciences and glass production and therefore our perfect partner when it comes to serving our needs for highest quality pharmaceutical glass tubes. This is fully reflected in a long-term supply contract between us.
“Furthermore joining forces with Corning in a venture for innovative pharmaceutical glass packaging products will expand our product portfolio of high-quality tubular pharmaceutical packaging products,” said Gerresheimer CEO, UWE Röhrhoff.
The deal is expected to close before the end of this year.