Supply deal also inked, which could earn PRWT between $100–200 million annually.
PRWT Services is establishing a presence in the life science market through the acquisition of the Cherokee chemical manufacturing plant in Riverside, PA, from Merck & Co.
Cherokee also entered into a five-year supply agreement with Merck for an estimated value of $100–200 million annually.
The Cherokee plant is an API manufacturing facility of products/antibiotics for humans and animals. The facility will be a part of subsidiary, Cherokee Pharmaceuticals.
PRWT intends to make considerable capital investments in the Cherokee plant to support the growth of the business and increase the number of jobs available in the local community, he continues.
“The acquisition of the Cherokee plant is consistent with PRWT’s vision of growing the company by expanding into new markets, services, and lines of business,” says Willie F. Johnson, chairman & CEO of PRWT.
“All 400 employees working at the plant will be offered jobs and are expected to transfer their employment from Merck to PRWT,” Johnson continues.