OR WAIT null SECS
Cambrex Corp. signed a definitive stock-purchase agreement to sell two of its human-health facilities to a holding company controlled by International Chemical Investors II S.A. (Frankfurt, Germany).
East Rutherford, NJ (Oct. 24 and Oct. 20)-Cambrex Corp. (www.cambrex.com) has agreed to sell its Bioproducts and Biopharma segments to Lonza Group AG (Basel, Switzerland, www.lonza.com) for $460 million in cash. Cambrex will use the proceeds of the sale to repay all outstanding debt and pay a special dividend to stockholders. The transaction is expected to close in 90–120 days, subject to regulatory and stockholder approval.
Cambrex's Bioproducts segment manufactures research, therapeutic, and analytical testing products for drug discovery and biotherapeutic manufacturing. The company's Biopharma business provides process-development services and contract manufacturing for therapeutic proteins, vaccines, and other biologic drugs. Cambrex's Human Health business offers products and services for the process development and manufacturing of active pharmaceutical ingredients, advanced pharmaceutical intermediates, and specialty intermediates.
Upon completion of the sale, Cambrex will restructure its Human Health business to use its resources efficiently. The company plans to reduce overhead by approximately $8 million per year.
In related news, Cambrex signed a definitive stock-purchase agreement to sell two of its human-health facilities to a holding company controlled by International Chemical Investors II S.A. (ICIG, Frankfurt, Germany, www.ic-investors.com).
The facilities (located in Cork, Ireland and Landen, Belgium) manufacture small-molecule active pharmaceutical ingredients (APIs) and advanced intermediates. Cambrex sold the sites to streamline its human-health segment and now will invest in its three largest facilities, which specialize in high-potency manufacturing, taste masking, controlled substances, and generic APIs.
The sale of the two facilities is expected to close within 30 days, and Cambrex hopes to report a $30-million noncash charge in the fourth quarter of 2006 as a result of this transaction.