Business & Economics :: Latest News
April 30, 2008
BASF sells its Shreveport site
BASF Corp. (Florham Park, N.J.; www.basf.com) announced today that it has signed a definitive agreement to sell its manufacturing facility in Shreveport, Louisiana and the related contract manufacturing business for finished pharmaceuticals to Dr. Reddy’s Laboratories (www.drreddys.com) an international pharmaceutical company headquartered in Hyderabad, Andhra Pradesh, India. Both parties agreed not to disclose financial details of the transaction, which is expected to close today.
As part of the agreement, approximately 150 employees will transfer from BASF to Dr. Reddy’s Laboratories. The 42-acre Shreveport facility currently manufactures and packages prescription and over-the-counter (OTC) pharmaceutical products, liquids, tablets and creams for the North American market. BASF is divesting the site and related business in order to concentrate on core businesses in its Care Chemicals division, which include custom synthesis services, excipients and active ingredients for the pharmaceuticals industry.
“BASF’s contract manufacturing activity for finished pharmaceuticals is limited to North America and not linked to the technological growth areas of the company’s Pharma Ingredients and Services business. We want to continue to grow our excipients and custom synthesis operations to better serve the pharmaceutical industry in the future,” said Martin Widmann, head of BASF’s Pharma Ingredients and Services global business unit. “We assessed a variety of strategic options, but ultimately concluded that a divestiture is the best scenario not only for BASF but also for the future of the Shreveport site and its employees.”
“We are excited about the acquisition of BASF’s finished dosage manufacturing facility in the U.S. as it enables us to strengthen our supply chain for North America, provides a strong platform for pursuing additional growth opportunities and also provides access to strong customer relationships with branded and generic companies,” said Satish Reddy, managing director & COO, Dr. Reddy’s Laboratories