Madison Dearborn Partners snatches up CDMO Alcami and its 1,000 employees

Alcami, with offices in Triangle Research Park, North Carolina, will have a new private equity owner when a deal with Madison Dearborn Partners closes in the third quarter of 2018. (Alcami)

A Durham, North Carolina-based CDMO with 10 locations globally is being picked up in a deal by private equity.

Alcami will be acquired by the Chicago-based Madison Dearborn Partners, which bought out the share of Ares Capital. The terms of the deal, which is expected to close in the third quarter of 2018, were not disclosed, but Alcami said CEO Stephan Kutzer will remain in place. The company's headquarters are in Research Triangle Park.

Madison Dearborn executives indicated they would be looking for other acquisitions to grow the business.

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“We see a wide range of opportunities to expand via organic growth and acquisition within Alcami’s highly fragmented market,” Jason Shideler, a Madison Dearborn director said in the announcement.  

The CDMO has about 1,000 employees at 10 locations worldwide in cities as wide-ranging as Wilmington, North Carolina; Charleston, South Carolina; Germantown, Wisconsin; and Weert, The Netherlands. It caters primarily to small and midsized pharmaceutical and biotechnology companies.

RELATED: Private equity fund buys out sterile injectables maker LSNE

The CDMO industry continues to be highly fragmented, leading to significant M&A in this area, often with larger firms rolling up small players to build out their networks. Private equity has played its part.

Last year, management and private equity firm Permira bought out Lyophilization Services of New England (LSNE) for an undisclosed sum. LSNE has three manufacturing facilities located in New Hampshire that provide lyophilization services to pharma, biotech and medical device clients. It specializes in small to medium-sized batches.

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