Wacker acquires ADL Biopharma for more than $100M

MUNICH—Wacker Chemie A.G. has purchased ADL Biopharma of Leon, Spain, from Kartesia, a financial investor.

The transaction, which "exceeded $108 million," was finalized May 8, according to Wacker.

The acquisition within Wacker Biosolutions "significantly strengthens" the life sciences division, adding about 300 employees and 2,000 cubic meters in fermentation capacity for Wacker.

"The acquisition of ADL BioPharma is an important step for the further growth of our biotechnology business, with which we want to achieve sales of 1 billion euros in 2030," CEO Christian Hartel said. "ADL BioPharma has developed very well in recent years and has seen strong sales growth."

With additional fermentation capacities, Wacker will look to further establish itself in sustainably produced food ingredients and the consumer product space, as well as within pharmaceutical proteins.

Wacker will leverage its technical expertise in collaboration with ADL Biopharma's contract manufacturing, Wacker said. ADL Biopharma also brings additional capacities for recovery and purification processes, as well as extensive process development experience in fermentive cystine, an important amino acid used in the biopharma and sustainably sourced food markets.

Wacker purchased fermentation assets (about 800 cubic meters in capacity) from ADL Biopharma in Leon in 2016, and the May 8 purchase brings 100 percent of the ADL shares under Wacker.

The German company now owns the entirety of the 1.6 million-sq.-ft. site in northern Spain.

Since the initial takeover of production assets seven years ago, Wacker has been manufacturing fermented cystine in Leon, investing millions in modernizing facilities and adding production equipment.

In the process, about 60 jobs have been created at the expansive site.

"ADL BioPharma's CMO business fits very well into our portfolio," said Susanne Leonhartsberger, director of Wacker Biosolutions. "The company has extensive and extremely important customer relationships, which we will continue to pursue and expand. We will integrate these activities into our ... division, where we produce, among other things, sustainable ingredients for the food and dietary supplement industry.

"We see growth opportunities for the Leon site in the coming years."

ADL Biopharma began about 60 years ago, an offshoot of Antibioticos S.A., founded in Leon in 1954. Antibioticos was a pioneer in the production of active pharmaceutical ingredients, according to ADL.

Accoring to its website, ADL's portfolio now includes flavors and fragrances; ingredients for food, personal care and cosmetic products; and APIs. The company operates one of the largest biotechnological plants for contract manufacturing of fermentation products in Europe, according to Leonhartsberger.

ADL also is one of the largest employers in Leon at about 300 workers, according to the city's website.

"We will integrate these activities into Wacker Biosolutions, for example through the production of sustainable ingredients for the foods and nutritional supplements industries," Leonhartsberger said. "We are happy to welcome our new colleagues into the company and plan to work with them on the continuous expansion of our business."

Wacker has more than 15,700 employees at 27 production sites, 26 technical centers (the most recent of which opened in Ann Arbor, Mich.) and 51 sales offices around the world.

Within Wacker Biosolutions, which is conducting research into mRNA and biopharma wearables, among other biosolutions, the motto is "incubate, innovate and grow."

"We are seeing demand pull in this segment from medicine and clean food," Martina Schulze-Adams, senior vice president for corporate development at Wacker, told Rubber News in March. "We plan to make strong investments in biosolutions moving forward, including with bolt-on acquisitions."

Specifically, Wacker has about $86.3 million per year pegged for capital expenditures in the biosolutions business segment. Wacker estimates the unit, which offers pharmaceutical proteins and cyclodextrins in addition to fermented cystine, will crest the $1 billion sales mark by 2030, Schulze-Adams said earlier this year.

Wacker Chemicals (comprising Wacker Silicones and Wacker Polymers) and Wacker Polysilicon round out the main business divisions for the German chemical company.