CRYSTAL LAKE, Ill.—AptarGroup Inc. is adding rubber and plastic medical manufacturing in China through acquisition.
The company announced July 28 that it has entered into an agreement to buy 80 percent of Weihai Hengyu Medical Products Co. Ltd. Terms were not disclosed.
Located in Weihai, in eastern China's Shandong province, Hengyu makes rubber and plastic components used in delivering injectable drugs. Hengyu was founded in 1998 and has about 150 employees.
President and CEO Stephan Tanda said the acquisition fits into Aptar's goal of strengthening its capabilities in high-growth economies, and its ability to serve local and global injectable drug customers.
Wang Yingye, co-founder of Hengyu, said in a news release that the two companies share the same vision, to be a drug delivery expert and provide unique, high-quality products to the health care industry.
Under the terms of the agreement, Aptar will have the option to acquire the remaining 20 percent of Hengyu five years after this transaction closes, which is scheduled for the third quarter of 2021.
Aptar is a publicly traded company with 13,000 employees in 20 countries. The company has estimated North American injection molding sales of $915 million, according to Plastics News data. Key end markets include pharmaceutical, beauty, personal care, home, food and beverage.