Albany, New York-based AMRI has agreed to a buyout worth more than $920 million as the M&A market for contract manufacturers continues to run hot. The deal comes just weeks after one of the big boys among CDMO players, Patheon, agreed to an acquisition valued at $7.2 billion.
AMRI, short for Albany Molecular Research, Inc., agreed to sell to private equity investors The Carlyle Group and GTCR for $21.75 per share in cash, which it says is a 42% premium over the price of AMRI stock the day before rumors of a potential sale surfaced.
AMRI, which has grown its business through a series of buyouts of its own, last month reported Q1 2017 revenues of $163.8 million, up 55% from 2016, and adjusted EBITDA up 83% to $24 million, but a loss of $10.7 million.
Last year, AMRI picked up Lodi, Italy-based Euticals in a $358 million deal. It got API facilities primarily in Italy, Germany, France and in Springfield, Missouri, with the deal. In 2014, it did a couple of deals for smaller companies.
There has been significant consolidation in the contract manufacturing market, as a handful of companies have bought competitors to get their hands on specialized services or geographic reach. That in turn has attracted even bigger companies that see growth in the field as a good bet, as pharma players often turn to contractors rather than build new plants.
In May, Waltham, Massachusetts-based Thermo Fisher agreed to pay $35 a share for Patheon, a sum that amounts to about $5.2 billion, and assume another $2 billion in debt for the Durham, North Carolina-based CDMO. Patheon has also done a series of deals to build its business.
Switzerland-based CDMO leader Lonza last year snapped up U.S.-based contract capsule and drug producer Capsugel in a $5.5 billion deal and contract player Catalent bought softgel capsule maker Accucaps last year for an undisclosed amount.