Pharmetics, Inc. has entered into an agreement to acquire the Niagara-Burlington commercial manufacturing business of Patheon for approximately $5.75 million. Pharmetics will acquire the assets -- including equipment, facilities and land -- at Patheon's facilities in Fort Erie and Burlington (Gateway Drive) in Ontario.
The two sites currently serve 14 clients, manufacturing and packaging about 60 OTC pharmaceutical products in a range of dosage forms, including tablets, liquids and powders. Laval, Quebec-based Pharmetics will continue to employ the entire active workforce of about 250 commercial manufacturing employees at the two sites and, subject to assignment of third-party contracts, will continue to manufacture and supply all products currently manufactured at the sites. Pharmetics is a privately owned contract manufacturer of vitamins, herbal products, supplements and OTC pharmaceutical products.
"Once the decision was made to seek a buyer for our OTC business, we had three key priorities: continuity of service for our clients, continuity of employment for our staff, and the sale of the facilities to a purchaser who could capitalize on the strategic value of these assets," said Riccardo Trecroce, outgoing chief executive officer of Patheon. "We are very pleased that in this transaction with Pharmetics, all three of these objectives will be achieved."
"These sites will provide Pharmetics with conveniently located, high-quality capacity and expertise with which to expand our business and serve our growing client base," said Ephriam Kandelshein, co-president of Pharmetics.
The transaction is expected to be completed on or about January 31, 2008.