EuroAPI, which is in the midst of a four-year restructuring plan, has sold its Haverhill manufacturing facility in the United Kingdom to Particle Dynamics as part of a share purchase agreement.
The Haverhill plant sale was first telegraphed by the Paris-based CDMO last June, just months after the company announced it was implementing its FOCUS-27 transformation plan. At the time, EuroAPI said it intended to trim about 550 jobs across all functions by 2027 and shed its production sites in Haverhill, U.K., and Brindisi, Italy.
Once the four-year restructuring plan is complete, EuroAPI plans to operate out of four manufacturing sites across France, Hungary and Germany.
EuroAPI did not disclose the financial terms of the Haverhill sale to Particle Dynamics, which now holds 100% of the shares in EuroAPI UK, the CDMO's former subsidiary that runs the British plant. The transaction has already closed, EuroAPI noted.
Particle Dynamics, which specializes in particle processing, delivery technology and finished dose production for the pharmaceutical and other related industries, expects the agreement to bolster its particle engineering reach and grow its customer base.
The company will continue to invest in the Haverhill site and is currently eyeing the installation of new commercial spray drying equipment, Particle Dynamics' CEO, Nicolas Fortin, said in a statement.
Shares of EuroAPI on the Euronext Paris exchange jumped 7.2% in midday trading today to 3.11 Euros ($3.67). EuroAPI shares traded as high as 18.59 Euros ($21.95) in October 2022 before myriad issues hammered the stock, triggering multiple executive changes and the rollout of the company's restructuring plan.
“The divestment of Haverhill is a key step toward optimizing our industrial footprint and advancing our FOCUS-27 transformation plan,” David Seignolle, EuroAPI’s chief executive, said in the release. “This transaction strengthens our efficiency and focus on our strategic network, reinforcing our commitment to execution.”
EuroAPI appointed Seignolle as its new CEO in December. Seignolle replaced Ludwig de Mot, who himself filled in after former CEO Karl Rotthier left the company at the end of October 2023.
Net sales from the Haverhill site in 2024 totaled about 35 million euros ($41.3 million), with close to 80% of that sum attributed to contracts with French drugmaker Sanofi, EuoAPI said in its divestment announcement. EuroAPI spun out from Sanofi in May 2022.
As part of its restructuring scheme, EuroAPI said last summer that it also plans to discontinue 13 APIs between 2026 and 2027 that account for about 80 million euros ($85 million) in annual sales. The company has said it aims to reach 75 million euros to 80 million euros in annual profits by the end of 2027.