Albany Molecular Research (AMRI), a global contract research and manufacturing organization based in Albany, N.Y., will acquire all outstanding shares of Cedarburg Pharmaceuticals for $38.2 million in cash. The transaction, including $2.8 million of assumed liabilities, is valued at $41 million.
Cedarburg Pharmaceuticals is a contract developer and manufacturer of technically complex active pharmaceutical ingredients (APIs) for both generic and branded customers. The transaction is consistent with AMRI's strategy to be the preeminent supplier of custom and complex drug development services and products to both the branded and generic pharmaceutical industries.
"We are very excited to be joining efforts with Cedarburg as they bring a unique blend of expertise in complex API, a scalable business infrastructure and extensive customer relationships that will augment our existing capabilities and services," said William S. Marth, AMRI's president and chief executive officer. "This transaction represents an important first step in building out our API capabilities, broadens our offerings and customer base and provides us with an ideal platform to pursue additional value creation opportunities."
Cedarburg's core capabilities include controlled substances, steroids, prostaglandins, vitamin D analogs, conjugation chemistry and inorganics for the analgesic, ophthalmology and oncology therapeutic areas. It has provided API development and manufacturing support for 13 approved products.
The transaction is expected to close in early April. Based on the anticipated timing of the close, the acquisition is expected to add between $13 million and $14 million to AMRI's revenue in 2014.
Grafton, Wis.-based Cedarburg will continue to operate independently within AMRI's API business unit. Chuck Boland, Cedarburg co-founder and executive vice president of business development, will lead the Cedarburg team and report to George Svokos, AMRI's senior vice president sales and general manager.