Alpharma Inc. has announced plans to sell its API business to 3i, a global private equity and venture capital company, for $395 million in cash.

Alpharma’s API business develops, manufactures and markets a line of fermentation-based APIs and one chemically-synthesized API that are used, primarily by third parties, in the manufacture of finished dose pharmaceutical products. For the nine months ended September 30, 2007, the API unit, which employs 700 people, had net sales of $138.7 million and operating income of $30.7 million. The sale includes manufacturing facilities in Copenhagen, Denmark; Oslo, Norway; Budapest, Hungary; and Taizhou, China.

Dean Mitchell, president and chief executive officer of Alpharma, remarked, “The divestiture of the API business for an attractive price will provide funds to capitalize on future growth opportunities in our Pharmaceuticals and Animal Health businesses. We believe this diversified combination positions us well to deliver strong growth with a stable foundation in the years to come. In addition, the increased focus and decreased complexity of our business mix, combined with a potential share buyback, will enable us to enhance value to our shareholders.”

The final purchase price is subject to adjustment based on the closing net cash balance and working capital of the business and is expected to generate net proceeds, after taxes, fees, and expenses, of approximately $365 million. The transaction is expected to close in the second quarter of 2008.Alpharma Sells API Business to 3i

Alpharma Inc. has announced plans to sell its API business to 3i, a global private equity and venture capital company, for $395 million in cash.

The company’s API business develops, manufactures and markets a line of fermentation-based APIs and one chemically-synthesized API that are used, primarily by third parties, in the manufacture of finished dose pharmaceutical products. For the nine months ended September 30, 2007, the API unit, which employs 700 people, had net sales of $138.7 million and operating income of $30.7 million. The sale includes manufacturing facilities in Copenhagen, Denmark; Oslo, Norway; Budapest, Hungary; and Taizhou, China.

Dean Mitchell, president and chief executive officer of Alpharma, remarked, “The divestiture of the API business for an attractive price will provide funds to capitalize on future growth opportunities in our Pharmaceuticals and Animal Health businesses. We believe this diversified combination positions us well to deliver strong growth with a stable foundation in the years to come. In addition, the increased focus and decreased complexity of our business mix, combined with a potential share buyback, will enable us to enhance value to our shareholders.”

The final purchase price is subject to adjustment based on the closing net cash balance and working capital of the business and is expected to generate net proceeds, after taxes, fees, and expenses, of approximately $365 million. The transaction is expected to close in the second quarter of 2008.