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Thursday, 14 October 1999

Merger means expansion in N.J., plant closings in Pa., Mo.

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October 15, 1999

(AP) – The merger of drug makers Rhone-Poulenc Rorer (RPR) and Hoechst Marion Roussel of Germany will result in the expansion of operations in Bridgewater N.J. and the closing of facilities in Collegeville, Pa. and Kansas City, Mo.

The merger will result in the closing of Hoechst's Kansas City headquarters, which houses 800 administrative, sales and marketing workers, and Rhone-Poulenc's North American headquarters, a 320-acre site in Collegeville that is home to 1,650 research, administrative, sales and marketing workers.

Hoechst will maintain its Kansas City manufacturing operations, keeping about 820 jobs.

The merged company, to be called Aventis Pharma, plans to center its North American operations at or near Bridgewater, where Hoechst already employs 850 people.

"By the end of the year 2000 the Collegeville site will be vacated and Kansas City, Mo., will also be closed," said John Abrams, senior director of external communications for Rhone-Poulenc North America. "We are hoping as many workers as practical will be moving to Bridgewater, N.J., or other RPR work sites."

The merger, announced Thursday, is expected to be finalized later this year. The new company would become a drug giant rivaling world leaders Merck and Glaxo Wellcome.

Collegeville Mayor Dennis Parker believes it will "have an impact until someone moves out there." "My concern is a lot of families will be uprooted," Parker said. "We have families who made Collegeville their home."

Parker was less concerned about the impact on property taxes. "As long as the property is on the books, the taxes have to be paid. But for the earned income tax, it is bound to have an impact," he said.

The merger is expected to create a company with annual sales nearing $20 billion, tying Switzerland's Novartis for leadership in the life-sciences industry.

RPR's products include Lovenox, a blood-thinning agent and anticoagulant; Taxotere, a drug treatment for breast cancer; and Nasacort, an allergy medicine.

Copyright © 1999 The Associated Press


See other coverage:
The Star-Ledger

The Philadelphia Inquirer

The Kansas City Star




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Additional Info

  • Syndicate to Realpoint: No
  • States: Missouri, New Jersey, Pennsylvania
  • Sector: Office
  • Subject: Development/Construction (DEV), Mergers & Acquisitions (M&A)
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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