Private Equity Firm American Capital Commits $391 Million to Combine Cambridge Major Laboratories, Inc. With AAIPharma Services
10/28/2013 10:13:55 AM
American Capital Commits $391 Million in the Combination of Cambridge Major Laboratories and AAIPharma Services
BETHESDA, Md., Oct. 28, 2013 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) ("American Capital") announced today that it has committed $391 million to the combination of its portfolio company Cambridge Major Laboratories Inc. ("CML") with AAIPharma Services Corp. ("AAIPharma"), a leading provider of analytical and formulation services that support all phases of drug development, and the related recapitalization of the business. CML is a leading global provider of complex chemistry-based outsourcing services and active pharmaceutical ingredient ("API") manufacturing services to the pharmaceutical and biotechnology industries. American Capital's investment is comprised of a revolving credit facility, senior term loan and common and preferred equity.
"AAIPharma's industry leading formulation development and analytical service offerings complement CML's world-class API development and manufacturing capabilities, and the combination creates an industry leading contract development and manufacturing organization ("CDMO"), which is positioned for significant growth and expansion," said Kyle Bradford, American Capital Managing Director. "The combined company will offer shortened development timelines to clients by streamlining and linking services from API development and manufacturing through formulation development and finished drug manufacturing and packaging for solid oral and parenteral products."
"American Capital is excited to work with AAIPharma's management team given its deep experience in the pharmaceutical services space and a successful track record of driving sustainable growth," said Ryan Nagim, American Capital Vice President. "Furthermore, we believe that the combination will provide pharmaceutical customers with a best-in-class service offering through a global footprint with operations across North America and Europe."
AAIPharma, based in Wilmington, NC, is a leading drug development and manufacturing company that provides solutions to pharmaceutical, biotech and healthcare companies. The company has a wide range of formulation development and analytical testing capabilities in addition to clinical and commercial manufacturing for drug products. Since inception, AAIPharma has completed over 600 U.S. and E.U. regulatory filings. AAIPharma has five U.S. and E.U. certified facilities in North Carolina, South Carolina, New Jersey and Missouri.
In December 2012, American Capital committed $212 million in the One Stop Buyout® of CML. Based in Germantown, WI, CML is an API development and manufacturing organization serving a broad customer base of pharmaceutical, biotech and generic drug companies. The company operates from FDA inspected facilities in the U.S. and Europe. In 2012, the company developed and supplied over 100 APIs for drugs in the early and mid-stages of development and 14 APIs for drugs that are commercially available. The products CML manufactures span a wide range of therapeutic categories from cancer to neurology to rare genetic diseases. For more information about American Capital's investment in CML, visit http://www.americancapital.com/our-portfolio/cambridge-major-laboratories-inc.
Brian Scanlan, CML President and CEO, stated, "This combination is a significant step for both CML and AAIPharma, creating a first of its kind merger of two equals: two highly respected, market leading firms in the CDMO space. With expertise in API development, analytical chemistry formulation and manufacturing, the combined company allows for drugs to be designed more efficiently from early stage development to commercialization."
Scanlan added, "We are pleased that our financial partner American Capital has supported our growth plan and strategic vision with their additional investment to complete this transaction. Their one stop financing ability, expertise in growing portfolio companies and deep knowledge of the life sciences industry make them a valuable partner for the combination of CML and AAIPharma and our future growth."
"We look forward to joining the American Capital family of portfolio companies and leveraging their expertise in facilitating organizational growth and integration," said Pat Walsh, AAIPharma CEO. "We believe the merger of AAIPharma and CML will offer customers a reliable partner that can address the majority of their pharmaceutical development and manufacturing requirements."
Jefferies LLC acted as financial advisor to CML. Morgan Stanley acted as financial advisor to AAIPharma.
Since its August 1997 IPO, American Capital and its affiliated funds have invested approximately $31 billion in over 550 portfolio companies both directly and in support of leading financial partners in change of control transactions. For more information about American Capital's portfolio, visit http://www.americancapital.com/our-portfolio.
ABOUT AMERICAN CAPITAL
American Capital, Ltd. (Nasdaq: ACAS) is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate, energy & infrastructure and structured products. American Capital manages $21 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $119 billion of total assets under management (including levered assets). Through an affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC) with approximately $10 billion of net book value and American Capital Mortgage Investment Corp. (Nasdaq: MTGE) with approximately $1 billion of net book value. From its eight offices in the U.S. and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $750 million. For further information, please refer to www.AmericanCapital.com.
This press release contains forward-looking statements. The statements regarding expected results of American Capital are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
Kyle Bradford, Managing Director, Buyouts Group (214) 273-6630
Ryan Nagim, Vice President, Buyouts Group (214) 273-6630
SOURCE American Capital, Ltd.
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