American Pacific buys pharma ingredients firm
Fine Chemicals for $119 million (€98m), in a deal which APC said
would give it access to 'fast-growing pharmaceutical markets'.
Aerojet Fine Chemicals, a subsidiary of GenCorp, is a manufacturer of active pharmaceutical ingredients (APIs) and registered intermediates for commercial customers in the pharmaceutical industry. In fiscal 2004, AFC reported sales of approximately $66 million.
American Pacific will pay GenCorp $100 million in cash for AFC and give it a seller note of $19 million, with the deal largely financed with bank loans. The agreement is expected to close in the early autumn.
AFC offers specialised engineering capabilities, which include energetic chemistry, high-containment facilities and operates the first commercial-scale simulated moving bed in the US used for chiral separation of pharmaceutical ingredients. It carries out production of kilo to multi-ton scale projects.
For its part, American Pacific focuses on space flight and defence systems, automotive airbag safety systems, explosives, fire extinguishing, and water treatment equipment, and clearly sees pharma as an important new sector for its business. "AFC is a perfect fit for our company," said John Gibson, CEO of American Pacific. "This acquisition provides us with a strong presence in fast growing pharmaceutical markets where we can provide customers with value added products and services."
GenCorp operates in a similar space, developing and selling aerospace and defence systems, and said the sale of AFC would allow it to focus on its core businesses and reduce
