Actavis plc has agreed to divest Aptalis Pharmaceutical Technologies, a pharmaceutical outsourcing and R&D business operating in the US, Canada, and Europe, to TPG, a private investment firm. Aptalis Pharmaceutical Technologies is part of Aptalis, an Actavis subsidiary, which Actavis gained through its $28-billion acquisition of Forest Laboratories, which was completed in July 2014. Forest Laboratories had earlier acquired Aptalis in February 2014. No other Aptalis businesses or products are included in the transaction. Financial terms were not disclosed.

Aptalis Pharmaceutical Technologies is a provider of in pharmaceutical R&D and manufacturing, with specialized capabilities in areas such as taste-masking and customized drug release with capabilities o support projects from formulation through scale-up and commercial-scale manufacturing. John Fraher, current president of Aptalis Pharmaceutical Technologies, will become CEO of the new standalone company, and will be joined by others from his management team. The business will continue to operate integrated R&D and manufacturing facilities in North America and Europe.

By acquiring Aptalis Pharmaceutical Technologies, TPG intends to use the company as a platform to enter into new partnerships and make additional acquisitions to grow the business. TPG’s healthcare practice has invested approximately $6 billion in equity since 2007, and the firm has executed more than 20 carve-outs from major corporations since its founding.

The transaction is expected to close by mid-2015, and is subject to customary closing conditions and regulatory approvals.

Source: Actavis