New PE owners say Alcami is ‘more than capable’ of doubling, tripling in size

Alcami Corporation is set to be acquired by MDP – a private equity firm which believes the CDMO could double or triple in size as a strong brand in a highly fragmented market.

Madison Dearborn Partners (MDP), a Chicago, IL-based private equity (PE) firm, will acquire the contract research and development company (CDMO) from Ares Capital Corporation, which has been a majority owner since 2016.

Jason Shideler, a director on Madison Dearborn Partner’s Health Care team, told us the company plans to continue investing in additional service lines and technical capabilities both organically and through acquisition.

“We believe the talented Alcami team is more than capable of doubling or tripling the size of the company as the leading platform CDMO,” he said.

Shideler said the PE firm has looked at numerous CDMOs and CROs over the years, mapping out the sector with help from its network of industry experts.

“With Alcami, we have been watching the company since the new management team took over several years ago,” he explained. “When several Ares Capital partners joined the Alcami board following their acquisition of American Capital, we began to take a closer look as Ares has been a longstanding trusted partner and lender to many of MDP’s portfolio companies.”

Following due diligence, Shideler said MDP concluded that Alcami was “a strong brand and business in a highly fragmented market, with a solid asset base, strong customer relationships, highly diversified product portfolio and unique go-to-market delivery model that has developed an industry-leading position.”

Ares is acting as lead debt financing arranger and will maintain a minority equity position in the company.

Alcami’s management team – much of which was reorganized when the company rebranded in March 2016 – will continue to guide the company, led by CEO, president, and chairman, Stephan Kutzer PhD.

The transaction, further terms of which were not disclosed, is expected to be completed in the third quarter of 2018.