Firm will also gain plants in four locations to continue production of fermentation-based and chemically synthesized compounds.
Alpharma plans to divest its API franchise to 3i for $395 million in cash. The transaction includes manufacturing facilities in Copenhagen, Oslo, Budapest, and Taizhou, China.
Alpharma’s API segment develops, manufactures, and markets a line of fermentation-based ingredients and one chemically synthesized ingredient used, primarily by third parties, in the manufacture of finished-dose pharmaceuticals. For the nine months ended September 30, 2007, API reportedly had net sales of $138.7 million and operating income of $30.7 million.
The transaction is expected to close in the second quarter. “Today’s announcement represents another milestone in Alpharma’s transformation into a diversified specialty pharmaceutical company,” says Dean Mitchell, president and CEO of Alpharma. “The divestiture of the active pharmaceutical ingredients business for an attractive price will provide funds to capitalize on future growth opportunities in our pharmaceuticals and animal health businesses.”