Drug delivery solutions provider AptarGroup has agreed to purchase an 80% equity stake in Chinese company Weihai Hengyu Medical Products for an undisclosed sum.

As per the terms of the deal, Aptar will be provided with an option to purchase the remaining 20% stake in Hengyu, upon completion of the fifth anniversary of the initial majority equity investment.

Established in 1998, Hengyu designs and manufactures elastomeric and plastic components used in injectable drug delivery. The company has around 150 employees at its Weihai facility.

The acquisition will allow Aptar to strengthen its capabilities in high-growth economies such as China.

Hengyu will also support Aptar to enhance its potential to better meet changing local market requirements, including regional manufacturing, well-integrated supply chain and close proximity to customers and their patients.

The addition of local manufacturing capacity will help Aptar to capitalise on the growth potential in the Asian region and enhance its capacity to serve local and global customers in the injectable drug market.

Aptar president and CEO Stephan Tanda said: “This majority equity investment is a strategic step that strengthens our competitive position in Asia and in the high-growth injectable drug delivery market.

“This transaction will meet our disciplined investment approach and Hengyu’s capabilities are complementary to our growing portfolio of injectable solutions.”

Aptar intends to fund the acquisition with available cash on hand.

Subject to customary regulatory approvals, the deal is expected to be completed in the third quarter of this year.

Recently, AptarGroup entered into a share purchase agreement to acquire a controlling stake in digital therapeutics developer Voluntis.