Procemsa (‘the Group’), a leading European developer and manufacturer of food supplements, today announces that it has signed an agreement to acquire a majority stake in Master Pharm S.A. (‘the Company’), a leading contract development and manufacturing company (‘CDMO’) in Poland.

Founded in 2002 and headquartered in Łódź, Poland, Master Pharm manufactures high-quality dietary requirements supplements for a wide range of international customers, providing end-to-end services from formulation to logistics across a wide range of galenic forms including tablets, soft gels, capsules, sachets and drops, among others.

The Company operates through two well-invested production facilities in Poland. Master Pharm also has a strong R&D team that will complement Procemsa’s highly regarded R&D capabilities and its focus on continuing innovation and product development fully aligned with customer-specific needs.

This acquisition is an important milestone for Procemsa as part of the Group’s consolidation strategy of the European CDMO market and reinforces its European presence by enhancing its geographic and customer diversification in the fast-growing Eastern European market. This follows the Group’s prior successful acquisitions of OFI in Italy (in December 2020) and Aakamp in Germany (in March 2022).

Post-acquisition, the Group will have more than €150 million of revenue, eight state-of-the art manufacturing plants, a comprehensive product portfolio, diversified geographical presence and will employ more than 700 people.

Commenting on the acquisition, Sagi Cohen, Group CEO, said: “Procemsa has an innovation-driven partnership business model with strong R&D and technology capabilities. We have a blue-chip customer base to whom we provide services across the entire value chain from product development to distribution, and the Master Pharm acquisition enables us to strengthen this positioning even further.

 “Master Pharm has an excellent market reputation with high product quality, long-term customer relationships and strong R&D capabilities and is highly complementary to Procemsa. Master Pharm’s well-invested manufacturing plants in Poland will provide significant scope to increase production volumes and to further expand our business in the fast-growing vitamins and supplements market in Europe. We are delighted to welcome the Master Pharm team and look forward to working with them as part of the overall Procemsa Group.”

 Commenting on the combination with Procemsa, Jacek Franasik, Master Pharm’s Founder and President of its Management Board, said: “Master Pharm has developed over the last 20 years into one of the leaders in Poland for contract development and manufacturing of dietary supplements. I am proud of what we have achieved to date and look forward to the collaboration with Procemsa. I am especially excited about the new development opportunities that will result from the strategic partnership between our companies, both in terms of new products and international expansion.”

 The transaction closing is subject to customary conditions and is expected to take place later in 2023.