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news.Alpharma has entered into a definitive agreement to sell its Active Pharmaceutical Ingredients business or API to certain investment funds managed by 3i, a global private equity and venture capital company, for $395 million in cash.
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The final purchase price is subject to adjustment based on the closing net cash balance and working capital of the business and is expected to generate net proceeds, after taxes, fees, and expenses, of approximately $365 million. The transaction is expected to close in the second quarter of 2008, pending regulatory approvals and other customary closing conditions.
The company expects to record a gain on the transaction and to use the net proceeds from the sale for general corporate purposes, including targeted strategic growth opportunities in both its Pharmaceuticals and Animal Health businesses, as well as for a potential share repurchase program, the timing and amount of which is under evaluation.