AMRI has signed a definitive agreement to acquire all outstanding shares of Cedarburg Pharmaceuticals, Inc., a contract developer and manufacturer of complex API's, for $38.2 million in cash. The transaction expands AMRI's position as a supplier of custom and complex drug development services and products to the branded and generic pharma industry.
Cedarburg, located in Grafton, WI, has expertise in developing technically differentiated APIs, with core capabilities in controlled substances, steroids, prostaglandins, vitamin D analogs, conjugation chemistry and inorganics for the analgesic, ophthalmology and oncology therapeutic areas. Cedarburg's forecasted full year 2014 revenue is estimated to be approximately $19 million.
Cedarburg will continue to operate independently within AMRI's API business unit. Chuck Boland, currently 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, API. The transaction is expected to close in early April 2014.
"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."