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news.New York-based private investment firm SK Capital has agreed to acquire Perrigo API, the active pharmaceutical ingredients (API) business of Perrigo Company in Israel, for $110m in an all-cash deal.
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Under the terms of the transaction, the parties will enter into a long-term supply agreement for Perrigo API to supply its inventory of existing commercial and pipeline APIs to the global healthcare company Perrigo.
With operations mainly in Israel and supporting functions in the US and India, Perrigo API develops and manufactures generic APIs and finished dose forms (FDF).
It claims to have a global customer base and a wide selection of products that take advantage of its capabilities in specialized manufacturing and core competency in complex chemistries.
SK Capital managing director Aaron Davenport said: “Perrigo API is a proven industry leader with strong innovation and manufacturing capabilities and a quality and customer-centric culture.
“The skills and expertise of the leadership team, dedicated employee-base and the quality of the manufacturing facilities have enabled the Business to establish a strong market position.”
The acquisition of Perrigo API is expected to complement other firms that SK owns and operates in the API and FDF value chain. Included in the list are Noramco, Halo Pharmaceutical and Tasmanian Alkaloids, which are all continuing to operate independently after their respective acquisitions.
SK Capital’s acquisition of Perrigo API is likely to be completed in the fourth quarter by which a new trade name will be given to the API business.
On the sidelines of announcing its financial results, Perrigo revealed that it has also agreed to divest its Russia consumer healthcare international business. However, it did not reveal the name of the buyer and the transaction value.