AMRI acquires Gadea Pharmaceutical Group
Albany Molecular Research (AMRI), a global contract research and manufacturing organization based in Albany, N.Y., has acquired all the outstanding shares of Gadea Pharmaceutical Group, a privately held company located in Valladolid, Spain, specializing in technically complex active pharmaceutical ingredients (APIs) and finished drug product. The purchase price was $174 million, including the issuance of 2.2 million shares of common stock to Gadea's owners, valued at $43.8 million, 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 toward becoming the preeminent 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."
Gerardo Gutierrez, Gadea's founder and chief executive officer, joined the company’s board of directors. With over 36 years of experience in the industry and nearly 25 years at Gadea, Gutierrez demonstrated a track record of success in innovation and management in specialty API. Javier Gallo will be leading AMRI's day-to-day operations in Spain as managing director, reporting to George Svokos, senior vice president, API and chief commercial officer.
Gadea brings a robust customer base and diverse revenue stream, with over 400 customers selling into 70 countries. With approximately 80% of revenue in non-U.S. markets, Gadea provides many new markets for AMRI. AMRI will be able to leverage its strength in the U.S. markets with the addition of Gadea's offerings.
Gadea, based in Valladolid, Spain, just north of Madrid, operates an API and finished dose development and manufacturing business with 2014 revenue of approximately $83 million and 2014 adjusted EBITDA of approximately $17 million. Gadea is expected to continue to operate independently within AMRI's API segment.