AMRI to buy Italian API maker Euticals for $358m

The deal expands AMRI’s API development and manufacturing operations as well as its presence in the European community.

Euticals manufactures APIs primarily in Italy, Germany, France and the US. The company has over 200 APIs in its product portfolio.

Lodi-headquartered Euticals has over 400 customers and 75% of its revenue comes from outside North America.

Euticals finished 2015 with about $245m in revenue and $27m in earnings before interest taxes, depreciation, and amortization (EBIDTA).

For 2016, Euticals has projected revenues of between $245m and $255m, as well as adjusted EBITDA of between $34m and $38m.

The transaction will expand AMRI’s expertise in areas that include sterile API, steroids, generics, fermentation, controlled substances, and monobactams

AMRI president and CEO William Marth said: "The acquisition of Euticals will provide us an established custom synthesis presence in Europe and will further build on our expertise in complex APIs, positioning AMRI as a preeminent provider of contract research, development and manufacturing services to the pharmaceutical industry."

AMRI agreed to acquire Euticals via a combination of issuing about 7 million shares of its common stock, currently valued at $110m, a $63m seller note, and the remainder in cash.

The stock will be divested outside the US to investor Lauro Cinquantasette, on whose behalf Fernando Napolitano will join the board of the combined company.

Image: AMRI corporate headquarters in Albany, New York, US. Photo: courtesy of Albany Molecular Research Inc. (AMRI).