NexGel acquires 50% interest in JV with CG Laboratories

NEXGEL announced the acquisition of 50% interest in a newly formed joint venture, JV, CG Converting and Packaging, LLC, with C.G. Laboratories for its converting and packaging business. The agreement is effective March 1, 2023. "We are excited to announce this strategic opportunity with one of our largest and long-standing customers," said Adam Levy, Chief Executive Officer of NEXGEL. "CG Labs converting and packaging division is already a successful and profitable business that has been one of NEXGEL’s largest customers for over 15 years. This transaction immediately increases capacity, improves margins and streamlines our supply chain. There are also significant synergies between the two operations, allowing for the onboarding of potential finished goods customers that in the past were not large enough to be practical for CG Labs or might be too large for NEXGEL to on board alone, as well as combined marketing and customer outreach." Under the terms of the agreement, this JV, named CG Converting and Packaging, LLC, will be owned 50% by NEXGEL. CG Labs will contribute its existing converting and packaging division to the JV, including, but not limited to, its facilities, equipment, employees, and customers. NEXGEL will contribute $500,000 to the JV to be used for equipment and facility upgrades as well as general corporate purposes.