Written by MARK JAEGER
Wednesday, 26 March 2014 16:23
Deal worth $38 million; Grafton plant will keep working independently
It was announced Monday that Grafton-based Cedarburg Hauser Pharmaceuticals has signed an agreement to be acquired by Albany Molecular Research.
According to the announcement posted on the company‚Äôs website, the transaction is expected to be completed early next month.
Published reports say the agreement is for $38.2 million. Nearly $3 million of the company‚Äôs existing debt will also be assumed by Albany Molecular.
Cedarburg Hauser Pharmaceuticals will continue to operate independently, reporting to Albany Molecular management.
‚ÄúWe are very excited to be joining efforts with Cedarburg as they bring a unique blend of expertise in complex API (active pharmaceutical ingredients), a scalable business infrastructure and extensive customer relationships that will augment our existing capabilities and services,‚ÄĚ said William Marth, Albany Molecular president and chief executive officer.
‚ÄúThis transaction represents an important first step in building out our API capabilities, broadens our offerings and customer base and provides us with an ideal platform to pursue additional value creation opportunities.‚ÄĚ
According to the company‚Äôs news release, Cedarburg Hauser‚Äôs core capabilities include the production of controlled substances, steroids, prostaglandins, vitamin D analogs, conjugation chemistry and inorganics for the analgesic, ophthalmology and oncology therapeutic areas.
Founded in 1997, Cedarburg Hauser Pharmaceuticals is hired by drug firms to manufacture a variety of active ingredients.
It has 78 employees at its Grafton plant and Milwaukee laboratory.
The company became Cedarburg Hauser Pharmaceuticals in 2009 when it acquired Denver-based Hauser Pharmaceutical Services
Last fall, the company won a CMO Leadership Award for excellence in productivity for the second year in a row.
In 2012, it completed a plant expansion in Grafton that included the addition of a 30-ton process chiller and a 200-kilowatt backup generator.
Albany Molecular Research is a global research and manufacturing company that specializes in drug discovery, development and manufacturing.
In business for 22 years, the company has facilities in the United States, Europe and Asia.