AAIPharma Services is growing larger as part of a bigger company in a merger with Cambridge Laboratories in a deal valued at $391 million.
The combined company will be led by a familiar face: Patrick Walsh, CEO of AAIPharma.
American Capital, the Maryland-based owner of Cambridge, put that price tag on the deal in an announcement Monday. Walsh’s appointment was announced Tuesday.
“We are very excited to be working with Pat on the continued growth of CML and AAIPharma,” said Kyle Bradford, American Capital’s managing director. “He is a well-respected CEO with over 30 years of leadership experience in the pharmaceutical industry. AAIPharma’s industry-leading formulation development and analytical service offerings complement CML’s world-class API development and manufacturing capabilities, and the combination creates an industry-leading contract development and manufacturing organization (“CDMO”) that is positioned for significant growth and expansion.”
Added Walsh: “The client response to our merger announcement has been very positive. Providing an integrated service offering, coupled with a stellar regulatory track record, allows the combined business to exceed the expectations of our global pharma client base.”
The deal was disclosed earlier this month, but no financial information was provided.
AAIPharma is a Wilmington-based provider of various pharmaceutical services.
Cambridge Major Laboratories is based in Germantown, Wis.
Both companies are privately held.
”The merger of these two organizations will offer customers a reliable partner that can address the majority of their pharmaceutical development and manufacturing requirements,” Walsh said in a statement at the time of the merger announcement. “The combined organization will provide comprehensive services that include process chemistry, solid state chemistry, API manufacturing, formulation development, analytical development and testing services, clinical and commercial finished dosage form manufacturing (oral solid and sterile), packaging, and stability services, all supported by robust project management.”
Cambridge Major Laboratories, or CML, focuses on pharmaceutical development and manufacturing.
AAIPharma provides pharmaceutical analytical testing, product development, and manufacturing services. It operates facilities in North and South Carolina.
American Capital said it had committed $391 million gto the deal for the merger and “related capitalization.”
The firm also is providing a revolving credit facility and a loan.
“AAIPharma’s industry leading formulation development and analytical service offerings complement CML’s world-class API development and manufacturing capabilities, and the combination creates an industry leading contract development and manufacturing organization, which is positioned for significant growth and expansion,” said Kyle Bradford, American Capital’s managing director. “The combined company will offer shortened development timelines to clients by streamlining and linking services from API development and manufacturing through formulation development and finished drug manufacturing and packaging for solid oral and parenteral products.”
