Shares in pharmaceutical drug maker Probiotec (ASX:PBP) have hit their highest point in nearly 10 years, after it acquired a complementary pharmaceutical packaging business.

Probiotec told the market this morning that it would pay $23m to acquire the business and assets formerly comprising Australian Blister Sealing (ABS).

ABS has a 40-plus-year history of packaging pharmaceutical and consumer products in a range of formats including foil, carded and clamshell blister, bottle filling, labelling, secondary packaging and additional services for the pharmaceutical, cosmetic and food industries.

Probiotec managing director Wes Stringer said the ABS acquisition added value to Probiotec’s own manufacturing, packing and distributing business.

“We are excited to continue to grow our footprint in the pharmaceutical industry and we expect the combination of Probiotec’s significant strength in contract manufacturing, SPL and ABS to provide benefits, synergies and opportunities for all three entities,” he said.

The company’s shares rose to an intraday high of $1.80, their highest point since February 12, 2010.

Probiotec also forecasts some impressive financial figures, saying earnings before interest, tax, depreciation and amortisation for the 2019 financial year would be, about $9m, up from $7.5m in the prior year.

Further strong organic growth in both sales and earnings, in conjunction with the ABS acquisition, is expected to tip revenue over the $100m mark in FY20.

“We are pleased that the company has executed its stated strategy of divesting non-core assets, organically growing our core business and strategically deploying capital. We are excited for the future as we continue to build momentum, integrate new business and field a significant level of sales enquiries,” chairman Geoff Pearce said.