Vaccine vial maker Stevanato to fund new plants, M&A with IPO money -chairman

Stevanato SpA

19/08/2021 21:34

By Francesca Landini and Andrea Mandala
    MILAN, Aug 19 (Reuters) - Italian vaccine vials maker
Stevanato Group  STVN.N  will use funds raised from its recent
listing on the New York Stock Exchange to increase production
capacity and for selected acquisitions, its executive chairman
told Reuters on Thursday.
    Demand for the firm's products and services increased due to
the COVID-19 pandemic. According to its own estimates, it
provides vials to about 90% of currently marketed COVID-19
vaccine programs.
    The medical packaging company raised $453.5 million in its
July IPO and aims to build two new plants, which will focus on
its high-margin products, including a drug containment solution
called EZ-Fill.
    "We will invest between 150-200 million euros ($175
million-$234 million) each in two new plants, one in the United
States and one in China," Franco Stevanato told Reuters in an
interview. He added that the new factories will produce EZ-Fill,
pre-sterilised syringes and vials. 
    "We are scouting many potential M&A deals but we do not have
anything specific in our radar screens yet," Stevanato said. 
    "We want to buy something that is not in our product
portfolio, something sophisticated," he said, mentioning pen
auto-injectors for drugs and other devices.
    Stevanato Group was founded soon after World War Two and has
expanded abroad under control of the founding family. Following
the listing, it holds around 85% of the company, though
Stevanato said it could eventually reduce its stake further,
while still maintaining control.
    The group said on Thursday its second-quarter revenue rose
26% to 204 million euros. Earnings before interest, taxes,
depreciation and amortisation increased 52% to 61 million euros.
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 (Reporting by Francesca Landini; Editing by Dan Grebler)
 ((francesca.landini@thomsonreuters.com; +39 02 66129437;
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