Corning Incorporated: Corning Agrees to Purchase Gerresheimer's Pharmaceutical Glass Tubing Business
June 30 2015 - 6:30AM
Companies forming equity venture to accelerate
pharmaceutical packaging innovations
CORNING, N.Y., June 30,
2015 - Corning Incorporated (NYSE: GLW) announced today
that it has reached a definitive agreement with Gerresheimer AG
(NYSE: GXI.DE) to acquire its pharmaceutical glass tubing business
for 196 million euros. The deal is expected to be completed by
year-end, subject to customary closing conditions, including
receipt of regulatory approvals.
Gerresheimer is a global leader in the manufacture
of glass and plastic packaging products for the pharmaceutical and
health care industry. Upon closing, Corning will assume ownership
of Gerresheimer's glass tubing operations in Vineland, N.J., and
Pisa, Italy. As part of this transaction, Corning and Gerresheimer
will enter into a long-term supply agreement for pharmaceutical
glass tubing. In addition, the companies will form an equity
venture to focus on accelerating Corning innovations for the
pharmaceutical glass packaging market. The equity venture will be
75% owned by Corning.
Advances in new drug-delivery technologies, along
with an industry need for greater operational efficiencies, are
driving the demand for more stringent pharmaceutical glass
packaging requirements. This transaction, when complete, will
enable Corning to bring its precision glass expertise to the
pharmaceutical glass packaging market.
"We think this is a tremendous opportunity to
apply Corning's unique model of innovation and operational
excellence to an adjacent market, which is experiencing healthy
growth," said Wendell P. Weeks, chairman, chief executive officer
and president. "It enables us to bring revolutionary new
technologies to the pharmaceutical glass packaging market with
Gerresheimer, a long-standing leader in the industry. There are
also a number of near-term cost synergies with our global melting
and forming operations as well as future sales synergies with our
existing Life Sciences customers."
Forward-Looking and Cautionary
Statements
This press release contains "forward-looking statements" (within
the meaning of the Private Securities Litigation Reform Act of
1995), which are based on current expectations and assumptions
about Corning's financial results and business operations, that
involve substantial risks and uncertainties that could cause actual
results to differ materially. These risks and uncertainties
include: the effect of global political, economic and business
conditions; conditions in the financial and credit
markets; currency fluctuations; tax rates; product demand
and industry capacity; competition; reliance on a concentrated
customer base; manufacturing efficiencies; cost reductions;
availability of critical components and materials; new product
commercialization; pricing fluctuations and changes in
the mix of sales between premium and non-premium products; new
plant start-up or restructuring costs; possible
disruption in commercial activities due to terrorist activity,
armed conflict, political or financial instability, natural
disasters, adverse weather conditions, or major health concerns;
adequacy of insurance; equity company activities; acquisition and
divestiture activities; the level of excess or obsolete inventory;
the rate of technology change; the ability to enforce patents;
product and components performance issues; retention of key
personnel; stock price fluctuations; and adverse litigation or
regulatory developments. These and other risk factors
are detailed in Corning's filings with the Securities and
Exchange Commission. Forward-looking statements speak only as
of the day that they are made, and Corning undertakes no obligation
to update them in light of new information or future events.
About Corning
Incorporated
Corning (www.corning.com) is one of the world's leading innovators
in materials science. For more than 160 years, Corning has applied
its unparalleled expertise in specialty glass, ceramics, and
optical physics to develop products that have created new
industries and transformed people's lives. Corning succeeds through
sustained investment in R&D, a unique combination of material
and process innovation, and close collaboration with customers to
solve tough technology challenges. Corning's businesses and markets
are constantly evolving. Today, Corning's products enable diverse
industries such as consumer electronics, telecommunications,
transportation, and life sciences. They include damage-resistant
cover glass for smartphones and tablets; precision glass for
advanced displays; optical fiber, wireless technologies, and
connectivity solutions for high-speed communications networks;
trusted products that accelerate drug discovery and manufacturing;
and emissions-control products for cars, trucks, and off-road
vehicles.
Media Relations
Contact:
M. Elizabeth
Dann
(607)
974-4989
dannme@corning.com
Investor Relations
Contact:
Ann H.S. Nicholson
(607) 974-6716
nicholsoas@corning.com
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This
announcement is distributed by NASDAQ OMX Corporate Solutions on
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The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Corning Incorporated via Globenewswire
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