AMRI Acquires Gadea Pharmaceutical Group

AMRI announced July 16 that it has acquired the outstanding shares of Gadea Pharmaceutical Group, a privately held company located in Valladolid, Spain, specializing in technically complex APIs and finished drug product. The purchase price was $174 million, including the issuance of 2.2 million shares of common stock to Gadea's owners, valued at $43.8 million, with the balance paid in cash and through the assumption of existing debt.

Gadea, based in Valladolid, Spain, operates an API and finished-dose development and manufacturing business with 2014 revenue of approximately $83 million and 2014 adjusted EBITDA of approximately $17 million. The company has more than 400 customers selling into 70 countries with approximately 80% of revenue in non-US markets.

Gadea is expected to continue to operate independently within AMRI's API segment. Gerardo Gutierrez, Gadea's founder and chief executive officer, has joined the AMRI Board of Directors.

In a statement, AMRI outlined benefits of the transaction.  Gadea's Crystal Pharma division expands AMRI's marketable API portfolio and positions the company as a source of specialty and generic API.  Gadea's portfolio extends AMRI's API development and manufacturing capabilities in steroids and hormones. Acquisition adds ophthalmic and parenteral suspension dosage forms and prefilled syringe and lyophilization capability. In addition, the transaction establishes a European base for sales and operations and increases AMRI's presence into non-US markets.

Source: Albany Molecular Research Inc. (AMRI)