SK Capital, a New York, New York-based private investment firm focused on the specialty materials, chemicals and pharmaceuticals sectors, has agreed to acquire Perrigo API, Perrigo’s active pharmaceutical ingredients (API) business in Israel, for $110 million.

As part of the transaction, the parties have agreed to enter into a long-term supply agreement for Perrigo API to supply multiple existing commercial and pipeline APIs to Perrigo. The transaction is expected to close during the fourth quarter of 2017, before which a new trade name will be selected and announced. Perrigo API is a developer and manufacturer of generic APIs and finished dose forms with operations primarily in Israel. Earlier in April 2017, Perrigo completed the sale of its India API business to Strides Shasun, a Bangalore, India-headquartered pharmaceutical company. 

The acquisition complements other companies that SK owns and operates in the API and finished dosage form value chain, including the specialty API producers, Noramco, based in Wilmington, Delaware, and Tasmanian Alkaloids based in Westbury, Australia, and Halo Pharmaceutical, a contract development and manufacturing organization, based in Whippany, New Jersey. These companies will continue to operate independently post-acquisition.

Source: SK Capital and Perrigo