Inyx to acquire Pharmapac UK
Inyx Pharma Ltd, a wholly owned subsidiary of US-based speciality pharmaceutical company Inyx, is to acquire Pharmapac UK, a leading contract pharmaceutical production and packaging provider. The acquisition is expected to be completed by 14 November, 2006. The purchase price is £9m in cash, plus up to another £1.5m in cash if certain milestones are met in 2007 and 2008.
The Pharmapac acquisition complements Inyx's pending acquisition of a pharmaceutical production business based in Germany, which will further strengthen Inyx's pan-European positioning. The German acquisition is now expected to be completed at the same time as the Pharmapac transaction, Inyx said.
Pharmapac was established in 1996 by former executives of Bristol-Myers Squibb and has become a low-cost, high-quality provider of contract production and packaging services to a blue-chip list of pharmaceutical companies. Its 42,000ft2 facilities in Wirral are about an hour drive from Inyx's current two UK sites also located in the North West of England. Inyx plans to retain all Pharmapac's 200-plus present employees.
In 2005, Pharmapac had revenues of £6.4m and EBITDA of £1.3m. In 2006, it expects revenues to reach about £7.3m with EBITDA of approximately £1.5m. In 2007, Inyx believes it can grow Pharmapac's revenues to around £10m and EBITDA to near £2.3m.
'The combining of our two companies will make Inyx an even stronger presence in the UK. Moreover, Pharmapac's secondary-packaging capabilities enhance Inyx's abilities to serve the pan-European pharmaceutical industry,' said Jack Kachkar, managing director, chairman and ceo of Inyx.