AMRI set to be acquired by private equity

By Melissa Fassbender contact

- Last updated on GMT

Albany Molecular Research Inc. (AMRI) is a global contract research and manufacturing organization. (Image: iStock/macgyverhh)
Albany Molecular Research Inc. (AMRI) is a global contract research and manufacturing organization. (Image: iStock/macgyverhh)
Private equity continues to make inroads in the contract research industry with two firms set to purchase AMRI in a deal worth $21.75 per share.

Affiliates of The Carlyle Group (Carlyle) and GTCR LLC (GTCR) have agreed to acquire the global contract research, development and manufacturing organization (CDMO) in cash for $21.75 per share.

The Carlyle Group is a global alternative asset manager with $162bn of assets under management and GTCR is a leading private equity firm focusing on areas such as financial services, technology, healthcare, media, and telecommunications.

According to the release from Albany Molecular Research, Inc.​ (AMRI), the companies' offer is a 42% premium to the 60-day weighted average closing stock price leading up to April 5, 2017 – the last trading day before published rumors of the potential sale.

The agreement was unanimously approved by AMRI's Board of Directors, according to the SEC filing​.

Patty Eisenhaur of AMRI told Outsourcing-Pharma.com that "a PE investment gives AMRI greater operational flexibility to invest and grow the business. Carlyle and GTCR believe in the potential of AMRI’s business and have a track record of supporting companies with the capital resources required to maximize growth opportunities​." 

"Next steps, the company expects the transaction to be completed in the third quarter of 2017, subject to obtaining shareholder and regulatory approvals​," she added.

Related topics: Mergers and acquisitions, Ingredients