Rhein Biotech acquires Korea's Green Cross Vaccine for $110 million

Rhein Biotech of the Netherlands is to acquire 80% of Green CrossVaccine Corp, a division of Korea Green Cross Vaccine Corp, Asia's largest vaccine manufacturer, in a deal valued at $110 million (in the form of cash and 700,000 Rhein shares). Daan Ellens, Rhein's chief executive, said that the firm is "confident that we have made the right choice of partner and are now in a strong position to realize our ambitious strategy of becoming one of Europe's top five leading biotechnology companies."

The transaction, which will create the world's third largest vaccine producer in the hepatitis B market, comes on the back of the firms' collaboration, which has been ongoing since 1993. KGVC will now own a 20% shareholding in the enlarged Rhein group, which it intends to hold "for the foreseeable future."

GCVC has 28 vaccines and employs approximately 150 people. It sells its products in Europe, Latin America, Asia and Africa, and provides its Hepavax Gene vaccine to World Health Organization institutes such as the Pan-American Health Organization and UNICEF. In 1999, the vaccine business of KGVC had a turnover of 54 million euros ($52.5 million) and pretax profits of 18 million euros.