Dive Brief:
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Contract research and manufacturing firm AMRI has agreed to acquire API manufacturer Euticals in a $358 million deal.
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AMRI said the deal "will provide us an established custom synthesis presence in Europe and will further build on our expertise in complex APIs."
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The deal involves 7 million shares of AMRI stock valued at $110 million, a $63 million seller note and the remainder in cash.
Dive Insight:
The purchase will make the company "one of the largest independent developers and suppliers of API to the pharmaceutical industry," AMRI said in a statement announcing the sale.
It diversifies AMRI's business offerings and its revenue streams through the breadth of the merged company's offerings and Euticals' European presence. About 75% of Euticals' revenue comes from outside of North America, AMRI said in the statement.
The API portfolio of Euticals includes 50 active US drug master files, 17 EU certificates of suitability or compliance with the European Pharmacopeia, 13 Japanese DMFs and 6 South Korean DMFs. AMRI said. The purchase is subject to regulatory review, but AMRI said the deal "is expected to be accretive to AMRI's 2016 non-GAAP diluted earnings per share."