DSM Pharmaceutical Products has agreed to sell its US pharmaceutical production site to Albemarle Corporation.
Under the agreement, Albermarle will acquire the assets along with the fine chemistry services and pharmachemicals business associated with DSM's South Haven, Michigan, facility.
DSM's decision to divest the site, which is focused on the production of generic active pharmaceutical ingredients (APIs), is part of the firm's asset base restructuring plan announced recently.
The new strategy program, which has been named Vision 2010 - Building on Strengths, focuses on "accelerating profitable and innovative growth of DSM's specialties portfolio," said the company.
The completion of the acquisition is targeted for September 30 but terms of the deal have yet to be disclosed, although DSM said the transaction would lead to a small profit.
"We are very pleased that through the transaction with Albemarle we have been able to secure the future of the site and to safeguard the employment of more than 100 of our people in South Haven", says Leendert Staal, president of DSM Pharmaceutical Products.
Albemarle, which is based in Richmond, Virginia, said it intended to add the site's complementary API business to its own APIs.
"The South Haven acquisition is another key move in our ongoing efforts to reposition the Fine Chemicals division around services and higher value activities," said John Nicols, Albemarle Fine Chemicals vice president.
"Our recent growth in fine chemistry services will benefit from South Haven's expertise and capabilities in cGMP development and manufacturing."
Albemarle's Fine Chemistry Services business, part of the company's Fine Chemicals division, provides cGMP and non-GMP custom chemical manufacturing services, active ingredients, and intermediates for pharmaceutical, agricultural chemical and other customers worldwide.