The acquisition of High Purity New England (HPNE) will advance Getinge’s strategic approach to expand its presence in the biopharma space, says firm.
Swedish company Getinge will acquire 100% of the shares in HPNE, which amounts to a $120 million cash payment once the deal has closed. Additionally, if performance milestones are achieved between 2023 to 2025, there is the potential to earn a further $170 million.
HPNE, a supplier of equipment and solutions for the biopharmaceutical sector, offers drug discovery, upstream and downstream processing, as well as fill/finish services. The company supports biotech players to manufacture vaccines, monoclonal antibodies (mAbs), and cell and gene therapies.
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“This acquisition is another step in Getinge Life Science strategic journey to further expand our presence in the biopharma segment,” said Eric Honroth, president of Life Science at Getinge.
“HPNE has in recent years successfully supplied the industry with dedicated single use assemblies. We are delighted to join forces with HPNE providing our customers with comprehensive and innovative solutions for bioprocessing applications.”
HPNE has invested more than $10 million at its plant in Smithfield, Rhode Island – just 50 minutes south of Boston, US. And in October 2021, the firm announced its plans to hire more than 150 employees to support the facility.
Moreover, Biomedical Advanced Research and Development Authority (BARDA) awarded HPNE with a $15 million contract in January 2022 to produce pharmaceutical consumable equipment for the agency and its third parties.
“We are very excited to be joining the Getinge family […] as we forge ahead into the next 20 years and beyond, I am thrilled to know that HPNE will continue to efficiently enable our customers to streamline and innovate their bioprocesses in combination with the Getinge name. Together, we will accomplish great things,” Mark Sitcoske, CEO of HPNE, said.
The deal is expected to close in Q3 this year, but it is subject to meeting specific closing conditions.
Getinge is not averse to M&A activity to build out its bioprocessing capabilities. In January 2020, Getinge paid $89 million to acquire Applikon Biotechnology to expand its life sciences technologies business. At the time, the firm cited Applikon’s range of systems for the research and production of vaccines and antibodies as well as those for the production of enzymes and bio-plastics as the main motivation.
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