Cambrex Completes Acquisition of Avista Pharma Solutions
Posted on January 2, 2019
Cambrex Corporation, a leading manufacturer of small molecule innovator and generic Active Pharmaceutical Ingredients (APIs), and finished dosage forms, today announced that it has completed the acquisition of Avista Pharma Solutions (“Avista”), a contract development, manufacturing, and testing organization, from Ampersand Capital Partners. The transaction, announced on November 20, 2018, strengthens Cambrex’s position as the leading, fully integrated small molecule contract development and manufacturing organization (CDMO) across the entire drug lifecycle.
Avista’s four sites in Durham, NC, Longmont, CO, Agawam, MA and Edinburgh, Scotland, UK will be integrated into Cambrex’s global network, as well as the company’s service offerings ranging from API and drug product development and cGMP manufacturing to stand-alone analytical, microbiology testing and solid state sciences.
“Acquiring Avista adds a full complement of early stage development capabilities to Cambrex’s larger scale capabilities for both APIs and finished dosage forms. We are excited to start off 2019 integrating Avista into Cambrex’s global network of facilities. Adding Avista today and Halo Pharma in September significantly increases our customer base and funnel of projects, provides significant cross selling opportunities and allows us to offer an integrated service offering for most small molecules from the pre-clinical stage through the commercial stage,” commented Steve Klosk, President and CEO of Cambrex.
Shawn Cavanagh, COO of Cambrex added, “I would like to welcome all of Avista’s employees into the Cambrex family, and I look forward to working with them as we continue to be the experts our customers enjoy working with.”
In September 2018, Cambrex acquired Halo Pharma, adding formulation development and finished dosage manufacturing capabilities to Cambrex’s existing global API manufacturing network. With the acquisition of Avista, Cambrex now operates 12 facilities around the globe and employs approximately 2,000 people.
The acquisition of Avista was funded with a combination of cash on hand and borrowings under Cambrex’s new senior secured credit facility, following a refinancing that was also completed today. The new facility, which replaces Cambrex’s prior facility, includes a 5-year $200 million term loan and a $600 million revolving credit facility. Loans under the new facility will initially bear interest at LIBOR plus 1.75%, subject to adjustment each fiscal quarter depending upon Cambrex’s total net leverage ratio. Additional details regarding the credit agreement governing the new facility will be included in a Current Report on Form 8-K that Cambrex will file with the Securities and Exchange Commission.
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