Contract drug manufacturer Patheon, which is based in the Triangle, is about to get a lot bigger.
The company, whose stock is traded on the Toronto exchange, said Monday it had agreed to acquired High Point-based Banner Pharmacaps in a deal worth $255 million.
Patheon acquired Banner from parent firm VION N.V., a global manufacturer based in the Netherlands.
Banner focuses on development and manufacturer of gelatin-based forms of medicine delivery and is the second largest such company. It operates facilities and labs in the Netherlands, Canada and Mexico.
“The acquisition of Banner advances our strategic plan put in place in 2011, fully aligning with Patheon’s intent to be the leader in oral dosage development and manufacturing services,” said Patheon Chief Executive Officer James Mullen. “The transaction provides us with a well-balanced portfolio of proprietary products, state-of-the-art facilities with enhanced capabilities, as well as an expanded geographical presence. We believe our visibility within the industry will be further strengthened as we pass the USD 1 billion-revenue mark.”
The deal is expected to close by the end of the year.
Patheon said that it had received commitments from a variety of lenders to provide financing for the deal.
In all, Patheon said it had lined up $650 million for loans and a revolving credit line to cover the deal as well as other debt, fees and expenses plus general corporate purposes.
Backers include Morgan Stanley, UBS, Credit Suisse and KeyBank.
In related financial guidance, Patheon revised upward its revenue forecast for the 12 months ending Oct. 31 to between $740 million and $745 million.
