Fagron strengthens position in US with acquisition of Letco
AUSTIN, TX – FAGRON NORTH AMERICA HEADQUARTERS – Today, Fagron, the world leader in pharmaceutical compouning, announced it has reached an agreement to acquire Letco Medical (Wayne, PA). Letco is a supplier of pharmaceutical raw materials, equipment, and other materials that support compounding, with expected sales of approximately $40 million and EBITDA margin of around 11% in 2021. The acquisition price is $34 million.
Rafael Padilla, CEO of Fagron: "We are very pleased to acquire Letco. Together, our companies will form a strong combination with a broad product portfolio, a strong customer base and excellent growth opportunities. With the acquisition of Letco, Fagron strengthens its position in Brands & Essentials in the United States. This brings us one step closer to realizing our ambition to be the market leader in this segment in the countries where we operate. We look forward to welcoming the Letco employees to the Fagron family."
Andrew Pulido, President of Fagron North America added, "Letco is a great addition to our existing platform in North America. By combining our businesses, we are excellently positioned to grow further, provide opportunities for our employees, and offer industry-leading service for our customers and the millions of patients they serve each year. We can't wait to get started with the combined team."
This mutually beneficial, customer-centric, combination increases accessibility to quality products and services that support the patient care needs of pharmacists across the U.S. "The acquisition of Letco further solidifies Fagron as the highest quality, most innovative, most customer centric compounding supplier in North America. We could not have found a better partner for our customers given Fagron’s global leadership position in driving the future of personalized medicine," said Doug Bowman, CEO of Letco.
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Letco focuses on the U.S. compounding market and offers an extensive portfolio of chemicals, covering a wide range of therapeutic categories, as well as supplies, an extensive range of dosage forms and delivery systems, pre-made topical bases, capsules, and equipment.
Since its founding in 1993, Letco has built a reputation as one of the most innovative companies in the compounding industry. Letco is committed to the highest quality, which translates into industry-leading quality assurance programs, rigorous quality control procedures, and a good track record with the FDA.
Fagron is a leading global company active in pharmaceutical compounding, focusing on delivering personalized medicine to hospitals, pharmacies, clinics and patients in 35 countries around the world.
As a top-tier pharmaceutical supplier, Fagron North America is focused on personalizing medicine through investments in pharmacy essentials like raw materials, equipment, and supplies, genomics, technology, 503B outsourcing, and continuing education for pharmacists.
Belgian company Fagron NV has its registered office in Nazareth and is listed on Euronext Brussels and Euronext Amsterdam under the ticker symbol ‘FAGR’. Fagron’s operational activities are managed by the Dutch company Fagron BV, which is headquartered in Rotterdam.