Agis Industries (TASE:
) today announced signature on an agreement Monday evening to buy an active pharmaceuticals ingredients plant from
(NYSE:AVE), for €5 million.
The announcement comes a month after the Israeli drugmaker announcing negotiations to buy an API maker in Europe.
Agis is carrying out the deal with Aventis Pharma Deutscheland through its subsidiaries Chemagis and Chemagis Germany.
The deal for the plant, located in Wiesbaden, Germany, includes its inventory as of the end of the third quarter. The plant's 60 employees will be taken over by Chemagis Germany.
The parties also agreed that Aventis will buy API from the plant during the next 10 years. Moreover, the parties stipulated minimum procurement amounts for the first five years. Agis estimates that such sales to the Aventis group could reach €15m a year.
Agis' annual sales were NIS 1.25 billion last year, and its first half sales reached NIS 685 million. The new plant is therefore expected to boost the Israeli drugmaker's revenues by 5%.
Chemagis Germany is also purchasing Aventis' share in the limited partnership InfraServe Wiesbaden, which owns properties and lands in the industrial zone housing the API plant. Chemagis Germany is paying €2.9 million for the partnership units, in five annual installments.
Agis ended the second quarter on revenues of NIS 353 million, up 13% from the parallel quarter of 2001. It netted NIS 11.7 million, a hefty 57% more than in the same three months of last year.