SK Capital, a private investment firm focused on the specialty materials, chemicals and pharmaceuticals sectors, has signed a definitive agreement to acquire Perrigo API, Perrigo’s active pharmaceutical ingredients (API) business. As part of the transaction, the parties have agreed to enter into a long-term supply agreement for Perrigo API to supply multiple existing commercial and pipeline APIs to Perrigo. The transaction is expected to close during Q4 2017, before which a new trade name will be selected and announced for the Business.
Perrigo API is a leading developer and manufacturer of generic APIs and finished dose forms (FDF) with operations primarily located in Israel and supporting functions in the U.S. and India. The Business has a global customer base and a broad array of products that leverage its specialized manufacturing capabilities and core competency in complex chemistries. Perrigo API is known for its uncompromising commitment to the highest quality and reliability standards and has an exemplary compliance track record.
SK Capital has effectively executed numerous prior transactions by collaborating with management to significantly grow revenue and profitability. This acquisition complements other leading companies that SK owns and operates in the API and FDF value chain including Noramco, Tasmanian Alkaloids and Halo Pharmaceutical, all of which will continue to operate independently post-acquisition.
Commenting on the agreement to acquire Perrigo API, Aaron Davenport, Managing Director at SK Capital, said, “Perrigo API is a proven industry leader with strong innovation and manufacturing capabilities and a quality and customer-centric culture. The skills and expertise of the leadership team, dedicated employee-base and the quality of the manufacturing facilities have enabled the Business to establish a strong market position.”
As part of Perrigo API’s renewed strategic vision to become an independent, high quality API supplier of choice for the generic pharmaceutical industry, four highly-experienced Israeli pharmaceutical executives will be joining the Board of Directors of the Business in partnership with SK Capital: Itzhak Krinsky, Meron Mann, Iftach Seri and Arik Yaari. These executives bring decades of experience managing pharmaceutical businesses of significant scale and complexity, including various roles as executives with Teva Pharmaceutical, Sun Pharma and other leading industry organizations.
Iftach Seri, incoming member of Perrigo API’s Board of Directors, added, “We believe tremendous value can be created through further investments in people, company culture, processes and technologies. We look forward to collaborating with the management team and employees to support their continued growth and building a successful working relationship with Perrigo through our long-term supply agreement.”
