Piramal Enterprises Limited through its wholly owned subsidiary in the US has agreed to acquire Ash Stevens, a Riverview, Michigan-based contract development and manufacturing organization (CDMO) for active pharmaceutical ingredients (APIs), in an all cash deal for a consideration of $42.95 million plus an earn-out consideration capped at $10 million. The transaction is expected to be completed by the end of August 2016 and is not subject to any regulatory approvals.

Ash Stevens serves several biotech, mid-size pharmaceutical, and large pharmaceutical clients. Piramal would gain 60,000 square feet of facilities, eight chemical drug development and production laboratories, and six full-scale production areas. Ash Stevens' facility in Michigan has engineering and containment controls for the safe handling and cGMP manufacture of small- and large-scale high-potency APIs, with occupational exposure limits ≤ 0.1µg/cubic meters. The facility has approvals from the US, European Union, Australian, Japanese, Korean, and Mexican regulatory agencies.

Source: Piramal