LAS VEGAS, July 13 /PRNewswire-FirstCall/ -- American Pacific Corporation announced today that it has agreed to acquire the assets of Aerojet Fine Chemicals ("AFC"), a subsidiary of GenCorp Inc., for cash and other consideration in the amount of approximately $119 million and the assumption of certain liabilities. The transaction will be financed in part by commercial bank loans and the issuance of a seller note. The agreement is subject to customary closing conditions and regulatory approvals and is expected to close in the early fall of 2005.
AFC is a leading manufacturer of active pharmaceutical ingredients and registered intermediates for commercial customers in the pharmaceutical industry. In fiscal 2004, AFC had sales of approximately $66 million.
AFC offers specialized engineering capabilities which include energetic chemistry, high-containment facilities and the first commercial-scale simulated moving bed in the U.S. used for chiral separation of pharmaceutical ingredients. AFC employs FDA Good Manufacturing Practices and its core products are FDA approved.
"AFC is a perfect fit for our company," said John R. Gibson, CEO of American Pacific. "It is an attractive, profitable business that complements our existing specialty chemical and energetic product portfolio. This acquisition provides us with a strong presence in fast growing pharmaceutical markets where we can provide customers with value added products and services."
About American Pacific Corporation:
American Pacific is a specialty chemical company that produces (i) energetic products used primarily in space flight and defense systems, automotive airbag safety systems and explosives, (ii) Halotron, a clean fire extinguishing agent and (iii) water treatment equipment. In 2004 it acquired the former Atlantic Research Corporation liquid in-space propulsion business. Ampac-ISP, as it is now known, is a leading supplier of commercial and military propulsion products and the world's largest producer of bipropellant thrusters. Additional information about American Pacific can be obtained by visiting the Companies' web sites at http://www.apfc.com.
Risk Factors/Forward Looking Statements
Except for the historical information contained herein, this News Release may contain Forward Looking Statements that are subject to risks and uncertainties, including the Company's ability to profitably integrate, manage and operate new businesses and/or investments competitively, as well as other risks detailed from time to time in the Company's SEC reports, including the most recent Form 10-K and 10-Q Reports.
Contact: Seth Van Voorhees
Vice President and Chief Financial Officer 702-699-4166
American Pacific CorporationCONTACT: Seth Van Voorhees, Vice President and Chief Financial Officer ofAmerican Pacific Corporation, +1-702-699-4166
Web site: http://www.apfc.com/
