API manufacturer Cambrex buys Halo Pharma for $425M — venturing into finished dose manufacturing
In another sign of consolidation in the outsourcing industry — following Catalent’s acquisition of Juniper just days ago — API manufacturer Cambrex announced its latest $425 million deal to snap up Halo Pharma, which would add to both its product development and manufacturing capacities.
With a workforce of 450, Halo Pharma runs two manufacturing facilities in Whippany, NJ and Montreal that specialize in “highly complex and difficult to produce formulations, products for pediatric indications and controlled substances.” East Rutherford, NJ-based Cambrex also likes how Halo’s expertise in oral solids, liquids and ointments will complement its small molecule API business, which employs 1,200 staffers between US and Europe.
“This acquisition opens a completely new segment of the market for Cambrex in finished dose development and manufacturing,” said Cambrex CEO Steve Klosk in a statement.
Halo Pharma was majority owned by SK Capital Partners, an investment firm that also holds what used to be Perrigo’s API unit but is now named Wavelength Pharmaceuticals.
To fund the deal — slated to happen this quarter — Cambrex will borrow against its $500 million senior credit facility to supplement its cash on hand.