Snyder Communications Inc., a Bethesda-based marketing firm, announced yesterday that it has acquired two private pharmaceutical sales companies.
The acquisition of PharmFlex Inc. of Malvern, Pa., was valued $34 million, while that of Rapid Deployment Group Ltd. (RDL) of Winchester, England, was valued at $24.5 million. Both acquisitions were paid for in Snyder common shares.
Snyder's stock closed yesterday at $36.0625 on the New York Stock Exchange, up 6.25 cents.
Both transactions will be accounted for as poolings-of-interests, with Snyder's balance sheet being combined with those of the acquired companies.
PharmFlex and RDL provide sales services to pharmaceutical manufacturers. Snyder had already acquired two other pharmaceutical sales organizations, New York-based MMD Inc. in January and Basingstoke, England-based Halliday Jones Sales Ltd. in August.
Snyder Chief Financial Officer Clay Perfall said no job reductions are expected as a result of the acquisitions. The company, which was founded in 1987, has 750 employees at its headquarters.
Perfall said competition, technological change and faster product testing have forced drug makers worldwide to turn to outside firms for assistance in marketing their goods. As this practice, known as outsourcing, has become more common, firms like Snyder have prospered. "Our business has been growing very rapidly," he said. "Through these acquisitions, we can increase the scope of our services."
The transactions also expand Snyder's international presence. In its eight years of existence, RDL has established operations in South Africa and Hungary, in addition to the United Kingdom. "Our clients are global, and they want providers who can offer manufacturing services on a global scale," Perfall said.
George Melillo, president and founder of PharmFlex, said his company has had 100 percent sales growth in each of its five years of existence. He said the deal with Snyder "associates us with a company that's focused on growing the industry we work in. Snyder is an organization that's committed to becoming a major player in pharmaceutical outsourcing."
Pub Date: 12/10/97