Upon completion of the transaction of its biotech businesses, Cambrex said that it will concentrate on deploying its resources to maximize the potential of its human health business through reducing overheads by approximately $8 million per year. This will be an attempt to offset the reduction in size and complexity of the Cambrex business.
The company also recently announced the sale of its subsidiaries based in Ireland and Belgium.
Assuming financing can be arranged on favorable terms, Cambrex expects the special dividend to be approximately $13.50 to $14.50 per share.
“After a thorough and deliberate process, our board of directors determined that the sale of our Bio Businesses to Lonza represents the most compelling means for realizing value for Cambrex stockholders,” said James Mack, chairman, president and CEO of Cambrex.
“For Lonza, this is the largest acquisition in our long company history,” said Stefan Borgas CEO of Lonza
The agreement is a positive step for Lonza and could help the company sell more advanced drug products to pharmaceutical companies. Combined 2005 sales from the biotech businesses accounted for 42% of the Cambrex's total sales of $452 million.
Under the terms of the agreement with Lonza, Cambrex may consider superior acquisition proposals, subject to a customary break-up fee.