Acquisition of API portfolio establishes a European base for sales and operations and significantly increases AMRI's presence in non-US markets
AMRI has acquired all the outstanding shares of Gadea Pharmaceutical Group, a privately held company located in Valladolid, Spain, specialising in technically complex active pharmaceutical ingredients (APIs) and finished drug products.
The purchase price was US$174m, including the issuance of 2.2 million shares of common stock to Gadea's owners, valued at $43.8m, with the balance paid in cash and through the assumption of existing debt.
‘The acquisition of Gadea marks another milestone in our company's path towards becoming the pre-eminent supplier of custom and complex drug development services and product to both the branded and generic pharmaceutical industry,’ said William S. Marth, AMRI's President and Chief Executive Officer. ‘This mutually beneficial transaction presents an exciting opportunity for our two companies that builds upon our growth, adding a strong portfolio of complex API that will augment our existing capabilities and services, and new customer relationships that will extend our global reach.’
Strategic benefits of the transaction include
‘For Gadea, this transaction will build on our company's proud past and position it for a powerful future,’ said Gerardo Gutierrez, CEO of Gadea. ‘Our capabilities in technically challenging API and diverse customer base are highly complementary to AMRI. With this combination, we achieve our goal of being a comprehensive provider of steroid APIs and gain access to the US market.’
Gadea operates a highly regarded API and finished dose development and manufacturing business with 2014 revenues of approximately $83m and 2014 adjusted EBITDA of approximately $17m.