Albany Molecular Research (AMRI), a global contract research and manufacturing organization, has acquired the outstanding equity interests of Aptuit's Glasgow, U.K., business and has entered into a definitive agreement to acquire Aptuit's SSCI/West Lafayette, Ind., business, for a total of $60 million, expanding AMRI's drug product development and aseptic clinical manufacturing capabilities.
Aptuit is a provider of integrated early discovery to mid-phase drug development services in the pharmaceutical industry, headquartered in Greenwich, Conn.
William S. Marth, AMRI's president and CEO, said, "Analytical Services sits at the interface of API and Drug Product, providing critical support for all aspects of pharmaceutical development and manufacturing. The West Lafayette team brings extensive material science knowledge and technology and will expand our capabilities in analytical testing to include peptides, proteins and oligonucleotides.
“Aptuit's Glasgow operation strengthens our front-end formulation expertise in our sterile injectable business, further extending our parenteral offerings and providing customers a single source to address their sterile fill/finish needs from formulation complete to commercial supply," continued Marth. "In addition, having aGlasgow base of operations provides us with an expanded footprint and customer base in Europe for our parenteral offerings, furthering one of our strategic goals."
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. The Aptuit businesses are expected to contribute $25 to $30 million to AMRI's revenue and $5 million 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.
Dr. Jonathan Goldman, CEO, Aptuit, said, "The sale of these sites to AMRI is part of our strategy to divest non-core assets and invest in our core competency of integrated early discovery to mid-phase drug development. We will continue to deliver world-class drug discovery and development services from our fully integrated, former large pharma R&D center of excellence in Verona, Italy, and our internationally renowned API facility in Oxford, U.K. This transaction, which is part of our strategic initiative to grow our integrated offerings, will facilitate reinvestment in our core competencies and allow us to further differentiate our existing, unique capabilities and pursue strategic acquisitions."
Goldman said Aptuit's reinvestment strategy will include targeted acquisitions to expand the company's service offerings and capital expenditure at the Verona facility.
"Our company has expanded by acquisition and organic growth. Future announcements will describe new additions to our capabilities in discovery and non-clinical development, as well as innovative strategic partnerships," he said.