Siegfried (SFZN) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of three drug substance sites in the US and Australia expands presence in key growth segments, especially in the US, supporting growth in small molecule manufacturing and innovative pharmaceuticals.

• Addresses high demand and limited US capacity, enabling entry into a protected, high-demand market with a focus on local-to-local supply.

• Expands global network, supporting the EVOLVE+ strategy for long-term profitable growth and increasing US network presence.

• Acquired sites offer strong assets, experienced personnel, and backward integration, enhancing supply chain resilience.

• Strengthens position as a leading CDMO for small-molecule drug substances and enables portfolio optimization.

Financial terms and conditions

• Valuation is well below 10x EV/EBITDA, under both trading multiples and recent US asset expectations.

• Acquisition financed through a mix of existing and new debt instruments, maintaining investment grade status and financial flexibility.

• The deal is non-dilutive to existing business and is expected to add approximately 10% to current net sales for a full year.

• Financial leverage post-deal will remain substantially below 3x, preserving dry powder for future investments.

Synergies and expected cost savings

• Wilmington and Pennsville sites form a complementary manufacturing cluster, optimizing controlled substances footprint and enabling operational synergies.

• Athens and Grafton create a best-in-class Acceleration Hub for early phase development and extraction expertise.

• Main value creation comes from repurposing Wilmington capacity for innovative, high-value compounds.

• No significant catch-up CapEx required; sites are in good condition and ready for immediate use.

• Backward integration at Extractas Bioscience increases supply chain resilience.