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The private investment firm’s $110-million acquisition boosts its API and finished dosage form value chain.
On August 11, 2017, SK Capital, a private investment firm focused on the specialty materials, chemicals, and pharmaceuticals sectors, announced that it has signed a definitive agreement to acquire Perrigo API, Perrigo Company’s Israeli-based API business. Perrigo has agreed to divest the API business for $110 million in cash, according to a Perrigo company filing with the US Securities and Exchange Commission (SEC).
As part of the transaction, the parties have agreed to enter into a long-term supply agreement for Perrigo API to supply multiple existing commercial and pipeline APIs to Perrigo. The transaction is expected to close during the fourth quarter of 2017, before which a new trade name will be selected and announced for the business.
Perrigo API is a developer and manufacturer of generic APIs and finished dosage forms with operations primarily located in Israel and supporting functions in the United States and India. The business has a global customer base and a broad array of products that leverage its specialized manufacturing capabilities and core competency in complex chemistries.
This acquisition complements other companies that SK owns and operates in the API and finished dosage form value chain, including Noramco, Tasmanian Alkaloids, and Halo Pharmaceutical, all of which will continue to operate independently post-acquisition.
Commenting on the agreement to acquire Perrigo API, Aaron Davenport, managing director at SK Capital, said, “Perrigo API is a proven industry leader with strong innovation and manufacturing capabilities and a quality and customer-centric culture. The skills and expertise of the leadership team, dedicated employee-base, and the quality of the manufacturing facilities have enabled the business to establish a strong market position.”
Iftach Seri, incoming member of Perrigo API’s board of directors, added, “We believe tremendous value can be created through further investments in people, company culture, processes, and technologies. We look forward to collaborating with the management team and employees to support their continued growth and building a successful working relationship with Perrigo through our long-term supply agreement.”