Bahrain-based Investcorp has signed a memorandum of understanding with Germany's VIAG for the acquisition of a controlling stake in Gerresheimer Glas. The deal is expected to be closed by mid-June.

Investcorp will take a 72.96 per cent stake in Gerresheimer. The remaining 27.04 per cent is traded on the Frankfurt and Dusseldorf stock exchanges. It is understood that Investcorp will pay about Eur 215 million ($206 million) for the stake, a 15 per cent discount to the stock's closing price on 7 April.

Gerresheimer produces high-quality tubular and speciality glass packaging systems at the top end of the market. Its products are sold mainly to the European pharmaceutical, laboratory and cosmetic industries.

Investcorp says Gerresheimer is well positioned to take advantage of the strong growth of the global pharmaceuticals industry, and that it will focus on complete product and packaging systems.

This is the first acquisition made by Investcorp this year and follows on a busy year in 1999, which saw the investment bank making five purchases, and five divestments. These deals, and the planned Gerresheimer acquisition, illustrate a clear shift in Investcorp's strategy. Technology companies, such as Gerresheimer and the speciality chemicals division of Astra-Zeneca acquired last year, are attracting more attention than the high-profile retail companies, such as Saks Fifth Avenue and Tiffany's, on which Investcorp built its name.