Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Chemical manufacturer American Pacific has entered an agreement to buy Aerojet Fine Chemicals, a subsidiary of GenCorp, for approximately $119 million.
Subscribe to our email newsletter
GenCorp will receive $100 million in cash and a seller note for the further $19 million in consideration of their Rancho Cordova-based unit. Under the deal certain debts will also be transferred to American Pacific.
The agreement is subject to customary closing conditions and regulatory approvals and is expected to close in early fall, 2005.
American Pacific said the transaction was part of the company’s plan to become a more focused and streamlined company. The purchase is designed to provide the company with a strong presence in the fast-growing pharmaceutical market.
Aerojet manufactures active pharmaceutical ingredients and registered intermediates for commercial customers in the pharmaceutical industry. According to American Pacific, Aerojet had sales of approximately $66 million in 2004.
Following the news, shares in American Pacific rose 7.6%, to $8.77 while GenCorp’s stock increased by 2.6%, to $19.85.