02.13.15
Actavis plc and TPG, a global private investment firm, have entered a definitive agreement under which Actavis will divest its Aptalis Pharmaceutical Technologies (Pharmatech) business, which operates within Actavis’ subsidiary in the U.S., Canada and Europe. Financial terms were not disclosed.
Pharmatech provides R&D and manufacturing services, with specialized capabilities in taste-masking and customized drug release and supports projects from formulation through scale-up and commercial-scale manufacturing. TPG intends to use Pharmatech 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.
John Fraher, current president of Aptalis Pharmaceutical Technologies, will become chief executive officer of the new standalone company, and will be joined by others from his management team. The business will continue to operate 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 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.”
According to Mr. Stewart, the decision to divest Pharmatech will have no impact on investing in and developing the Medis third-party business.
“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 Mr. Fraher, president of Aptalis Pharmaceutical Technologies.
The transaction, subject to customary closing conditions and regulatory approvals, is expected to close by mid-2015.
Pharmatech provides R&D and manufacturing services, with specialized capabilities in taste-masking and customized drug release and supports projects from formulation through scale-up and commercial-scale manufacturing. TPG intends to use Pharmatech 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.
John Fraher, current president of Aptalis Pharmaceutical Technologies, will become chief executive officer of the new standalone company, and will be joined by others from his management team. The business will continue to operate 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 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.”
According to Mr. Stewart, the decision to divest Pharmatech will have no impact on investing in and developing the Medis third-party business.
“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 Mr. Fraher, president of Aptalis Pharmaceutical Technologies.
The transaction, subject to customary closing conditions and regulatory approvals, is expected to close by mid-2015.
