Irish pharma supplier Prodieco buys US rival in strategic consolidation deal

Acquisition of American firm Gemel Precision Tooling hailed as a ‘significant value creation opportunity’ by Dublin-based firm’s CEO Lisa Ainsworth

Dublin-based precision engineering firm Prodieco Limited has acquired one of its main competitors in the US in a deal that is expected to further consolidate its global leadership position in a highly specialised part of the wider pharma sector.

The acquisition of US firm Gemel Precision Tooling by the Irish firm is seen as a big move as it looks to cement its leadership position in a niche but lucrative global market.

Prodieco has operated from Cookstown in Tallaght since it was established as a press tooling firm in 1962.

It was bought by the Rennicks family in the 1990s when it was mainly focused on supplying casings and frames to Dell and others for the then-booming PC manufacturing business in Ireland.

When that PC business shifted to China and Poland, Prodieco refocused to supplying specialised tooling for the pharma sector before it was acquired in 2021 in a deal backed by private equity giant Agilitas.

The west Dublin firm has grown to become the largest independent producer of blister tooling format change parts globally — with 280 employees and two high-tech manufacturing sites in west Dublin.

Prodieco, whose revenues are generated 98pc by exports to 80 different countries, provides highly specialised precision engineering tools to many of the biggest pharma firms globally that allow them to change the format of the blister packing they use for their drugs.

Pennsylvania-based Gemel is a leading provider of bespoke ­precision engineering solutions and parts to the life sciences sector in America that previously competed with the Irish firm in the blister tooling market.

Prodieco CEO Lisa Ainsworth told the Sunday Independent that the US firm had over 40 years’ industry experience and had a strong manufacturing infrastructure, which would extend the Irish firm’s manufacturing capabilities in the Americas.

She said that the “strategically compelling combination” was an important step in Prodieco’s strategy to build a manufacturing and engineering centre of excellence in the US and would enable it to deliver market leading customer service and delivery times to the North American market.

It would also provide a strategic location to further support the Central and South American markets.

“This transaction represents a significant value creation opportunity for Prodieco,” said Ainsworth, who is an electrical engineer who previously worked for General Electric for 18 years before joining Prodieco last September.

“The acquisition strengthens our presence in important markets across the Americas and will enhance our manufacturing and delivery capabilities in the region while providing an important platform for future development opportunities.”

Ainsworth said that the Gemel deal would likely be just the first acquisition as it seeks to expand.

“We also have significant opportunities for growing our core business through organic growth. This allows us to better serve our US customers and at the same time it frees up capacity in our Dublin facilities to grow in our strong European markets and elsewhere,” she said.

Reporting on:independent.ie