CVC Technologies Inc. confirmed to acquire 100% of the shares of Korean softgel manufacturer Changsung Softgel System Ltd. for US$17.4 million (approximately NT$527 million), according to its board of directors.

Changsung is Asia's top manufacturer of industrial softgel manufacturer, with over 50 years of development and business in productions and related ancillary equipment.

Changsung is in fact an upstream partner of CVC Technologies, and its distributor in Taiwan is also CVC. Changsung's main geographical focus is Europe and South America, while CVC's market is focused on the US and India. As some customers of the two parties overlapped, both companies expect to be vertically integrated, CVC will provide one-stop services, increasing market share in the pharmaceutical packaging space.

CVC said that although Changsung's revenue is smaller than that of CVC, it has an overall gross margin of 40% and a future compounded growth rate of 10% for soft capsules.

CVC will acquire all 173,600 ordinary shares of Changsung for US$100.23 per share, acquiring a 100% stake in the company for a total transaction amount of US$17.4 million. They expect to close the deal in the second quarter the latest.