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Stirling bids for another manufacturing facility
Nick Evans
Thursday, 3 December 2009

STIRLING Products is having a second crack at acquiring a manufacturing asset, announcing yesterday it was in the late stages of negotiating the purchase of a Canadian manufacturing facility from the plant’s receivers.

Stirling's new Canadian manufacturing facility

Stirling has been looking for a manufacturing plant since earlier this year, putting in an offer for troubled NSW contract manufacturer MilPharma in late June.

Stirling ditched those plans in July, however, citing difficulties reaching agreement with the plant’s lessors for the assignment of the company’s debts.

The company has now reached agreement with the administrators of a failed Canadian company to acquire a “near new” manufacturing facility, which includes a fully licensed 1400 square metre pharmaceutical manufacturing area, laboratory space, packaging areas and a fully racked warehouse.

Stirling said it had not yet completed the acquisition, but was waiting on the approval of a Canadian court to close the deal.

The financial terms have not been disclosed, but Stirling managing director Peter Boonen said the facility was being acquired on “extremely favourable” terms.

“This sale will complete another key strategic milestone in the global positioning of the company as well as give the company total control over a number of its unique products. Further, as a freehold property, this facility will also add to and underpin the company’s growing asset position,” he said.

Stirling was to purchase MilPharma for $465,000 in cash and shares, as well as taking on the company’s $2.5 million debt load and agreeing to pay vendors 20% of its profits over the next five years.