AMRI set to be acquired by private equity

05-Jun-2017 - Last updated on 07-Jun-2017 at 12:58 GMT

Albany Molecular Research Inc. (AMRI) is a global contract research and manufacturing organization. (Image: iStock/macgyverhh)

Private equity continues to make inroads in the contract research industry with two firms set to purchase AMRI in a deal worth $21.75 per share.

Affiliates of The Carlyle Group (Carlyle) and GTCR LLC (GTCR) have agreed to acquire the global contract research, development and manufacturing organization (CDMO) in cash for $21.75 per share.

The Carlyle Group is a global alternative asset manager with $162bn of assets under management and GTCR is a leading private equity firm focusing on areas such as financial services, technology, healthcare, media, and telecommunications.

According to the release from Albany Molecular Research, Inc. (AMRI), the companies' offer is a 42% premium to the 60-day weighted average closing stock price leading up to April 5, 2017 – the last trading day before published rumors of the potential sale.

The agreement was unanimously approved by AMRI's Board of Directors, according to the SEC filing.

Patty Eisenhaur of AMRI told Outsourcing-Pharma.com that "a PE investment gives AMRI greater operational flexibility to invest and grow the business. Carlyle and GTCR believe in the potential of AMRI’s business and have a track record of supporting companies with the capital resources required to maximize growth opportunities."

"Next steps, the company expects the transaction to be completed in the third quarter of 2017, subject to obtaining shareholder and regulatory approvals," she added.