Actavis plc ACT and TPG, the global private investment firm, today announced that they
have entered into definitive agreements, under which Actavis will divest to
TPG the business currently known as Aptalis Pharmaceutical Technologies
(Pharmatech) — a pharmaceutical outsourcing and R&D business within Actavis'
subsidiary Aptalis operating in the United States, Canada and Europe (where
the transaction is, in certain jurisdictions, still subject to local
regulations, discussions and clearances). No other Aptalis businesses or
products are included in the transaction. No financial terms were disclosed.
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Pharmatech is a leader in pharmaceutical R&D and manufacturing, with
specialized capabilities in areas such as taste-masking and customized drug
release and the ability to support projects from formulation through scale-up
and commercial-scale manufacturing. John Fraher, current president of Aptalis
Pharmaceutical Technologies, will become CEO of the new standalone company,
and will be joined by others from his management team. The business will
continue to operate integrated R&D and manufacturing facilities in North
America and Europe.
"Our decision to divest the Pharmatech business is consistent with our
strategic commitment to build leadership positions in our core areas of
strength," said Robert Stewart, Chief Operating Officer of Actavis. "It will
enable our industry-leading Global Operations team to sharpen their focus on
supporting our existing global supply chain, and on preparing for the
expansion of our manufacturing network with the addition of the Allergan
facilities following the close of the acquisition later this year. The
Pharmatech team has done an exceptional job in meeting its objectives, and I
would like to thank them for the tremendous work they have done for Actavis.
The decision to divest Pharmatech will have no impact on our commitment to
investing in and developing our industry-leading Medis third-party business."
"We see great demand in the market for Pharmatech's drug delivery and R&D
expertise, and by launching this platform, we hope to continue to support the
growth and innovation of pharmaceutical companies, both through the
development of de novo products, novel value-added formulations and targeted
generic products," said John Schilling of TPG.
By acquiring Pharmatech TPG intends to use the company as a platform to enter
into new partnerships and make additional acquisitions to grow the business.
TPG's healthcare practice has invested approximately $6 billion in equity
since 2007, and the firm has executed more than 20 carve-outs from major
corporations since its founding.
"We're excited to renew our partnership with TPG, and believe the firm's
experience in the pharma industry, combined with their past successes in
establishing market-leaders from carve-outs, positions us well to build a
new, successful platform," said John Fraher, president of Aptalis
Pharmaceutical Technologies.
The transaction is expected to close by mid-2015, and is subject to customary
closing conditions and regulatory approvals.
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