AMRI buys Aptuit's two facilities in US & UK for $60 mn

The US-based Albany Molecular Research Inc (AMRI), a global contract research and manufacturing organisation, has acquired the outstanding equity interests of Aptuit's Glasgow, UK, business and has entered into a definitive agreement to acquire Aptuit's SSCI/West Lafayette (Indiana, USA) business for total consideration of $60 million, expanding AMRI's drug product development and aseptic clinical manufacturing capabilities.
 
Servicing more than 250 customers a year, SSCI is known for solving difficult drug substance and formulated drug product challenges and is an expert in solid-state chemistry and analytical services. In addition, Aptuit's Glasgow facility will extend AMRI's capabilities platform to include sterile injectable drug product formulation and clinical stage manufacturing.
 
“We are very pleased to acquire these two facilities from Aptuit, which will further AMRI's expertise in drug product development and aseptic manufacturing services, two areas of our business where we are seeing the fastest level of growth,” said William Marth, AMRI's president and chief executive officer.
 
Under terms of the agreement, AMRI has paid $24 million for the Glasgow business. Subject to certain closing conditions, AMRI will pay the remaining $36 million for the West Lafayette business and will assume certain liabilities related to that subsidiary. AMRI expects to complete the transaction early in the first quarter of 2015. AMRI is financing the transaction with cash on hand and borrowings under its expanded $75 million revolving credit facility. The Aptuit businesses are expected to contribute $25 to $30 million to AMRI's revenue and $5 to $7 million to adjusted EBITDA in 2015, implying a purchase price multiple of two times 2015 revenue at the top end of the range.