Mylan ($MYL) has struck a $1 billion deal to get the dermatology business of Renaissance Acquisition Holding. But it is getting more than a portfolio of generic meds; it is also getting two plants and the contract manufacturing business they do.
On Friday, Mylan said it will pay $950 million in cash and up to $50 million in additional payments for the nonsterile, topicals-focused specialty and generics business of Renaissance, a fund that invests in pharma assets. It gets about 1,200 workers, including employees on both the sales and manufacturing side of the business. It said the businesses it is getting had 2015 revenues of about $370 million. Mylan wouldn't break out how much of that business is from the CDMO.
Mylan said the two manufacturing sites are located in Montreal, Canada, and San Antonio, TX, and have capabilities and capacity in creams, ointments, aerosols/foams, gels, suspensions, liquids and suppositories. It said the operations were complementary to Mylan's existing capabilities, suggesting it would keep them when the deal is complete.
Renaissance, which is privately controlled and majority-owned by RoundTable Healthcare Partners, was started in 2010 when Roundtable acquired Montreal, Canada-based Confab Laboratories and DPT Laboratories, which was based in San Antonio, TX.
The two companies said that RoundTable will keep its sterile-focused businesses and the manufacturing facility that produces those products. Mylan already has its hands full with Agila Specialties. It bought Agila from India’s Stride in 2013 for $1.6 billion and then ran into FDA issues over several of the plants.
Mylan is also getting more manufacturing capacity as part of the $7.2 billion deal it announced in February to buy Sweden-based Meda. In that deal, which is expected to close by the end of Q3 2016, Mylan is picking up 7 more manufacturing facilities in Europe, the U.S. and India.
- read the Mylan announcement
- here’s the RoundTable announcement
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