Recipharm To Acquire UK CDMO Consort Medical for $652 millionBy
Recipharm, a CDMO of active pharmaceutical ingredients (APIs) and drug products, has agreed to acquire Consort Medical, the parent company of Aesica, a CDMO of APIs and drug products, and Bespak, a CDMO of drug devices, for £505 million ($652 million).
The acquisition will be implemented by way of a takeover offer under Part 28 of the UK Companies Act and the UK Takeover Code, under which the shareholders of Consort Medical will receive £10.10 ($13.05) in cash per share, valuing the entire share capital at £505 million ($652 million) on a fully diluted basis. The offer is fully financed through bank facilities intended to be partly repaid by proceeds from a proposed share issue following closing. The combined entity will have annual pro forma revenue of SEK 10.8 billion ($1.1 billion) and pro forma EBITDA (earnings before interest, taxes, depreciation and amortization) of SEK 1.8 billion ($187 million).
Consort currently employs approximately 2,000 people globally, of which approximately 1,400 are located in the UK. Consort has UK facilities in King’s Lynn, Cambridge, Nelson, Milton Keynes, Cramlington, Queensborough and Hemel Hempstead. It has facilities in Germany in Monheim and Zwickau and a facility in Pianezza, Italy.
Recipharm, which is headquartered in Stockholm, Sweden, operates development and manufacturing facilities in France, Germany, India, Israel, Italy, Portugal, Spain, Sweden, the UK and the US.
The Board of Directors of Consort has confirmed its unanimous intention to recommend the shareholders of Consort to accept the offer. The transaction is expected to close in the first quarter of 2020.