The Qualicaps Group Completes Two Add-On Acquisitions to Drive Growth

Tokyo, Japan- The Qualicaps Group (Qualicaps), a global supplier of empty gelatin and non-gelatin capsules and capsule filling equipment, has closed two acquisitions, Pharmaphil Inc. and Technophar Equipment and Service Limited, through its affiliates to accelerate growth. Both companies are based in Windsor, Ontario, Canada and will operate as Qualicaps subsidiaries after the closing. To support these two acquisitions, The Carlyle Group, which owns Qualicaps, has injected additional equity and executed a debt refinancing. Financial terms were not disclosed.

Pharmaphil has been in business since 1965. It has enjoyed a reputation for producing high quality empty gelatin capsules in North America. Through the transaction, Qualicaps will acquire Pharmaphil’s pharmaceutical and health & nutrition customer base to strengthen its position in North America.

Technophar Equipment and Service Limited has been the leader in manufacturing high-quality capsule machine and related parts since its inception in 1984. Technophar owns three manufacturing facilities for its capsule machines and parts, one in Windsor and two in Romania. In addition, a hard capsule manufacturing facility is under construction in Romania and is expected to start operation in the first quarter of 2008.

Qualicaps has pursued a growth strategy that involves both organic business development and acquisitions since being acquired by Carlyle in 2005. Under its ownership, Carlyle has proactively supported growth acceleration at Qualicaps including these two acquisitions.

"These two acquisitions fit perfectly into Qualicaps’ mid-term growth strategy," said Herbert L. Hugill, Chairman and Chief Executive Officer of Qualicaps. "We believe all key strategic resources for our future growth are lined up through these acquisitions.

Qualicaps is an international company with manufacturing facilities in the United States, Spain and Japan. In addition to gelatin and HPMC (non-gelatin) capsules, Qualicaps offers a proprietary production line of capsule filling, sealing machinery and related equipment.

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