AMRI completes acquisition of Cedarburg Pharmaceuticals

AMRI has completed the previously announced acquisition of Cedarburg Pharmaceuticals.

Cedarburg, whose capabilities both augment and complement those of AMRI, is a contract developer and manufacturer of technically complex active pharmaceutical ingredients (APIs) for both generic and branded customers. The transaction is consistent with AMRI’s strategy to be the pre-eminent supplier of custom and complex drug development services and product to both the branded and generic pharmaceutical industry. Customers will benefit from access to a greater breadth of resources, including development of complex API, expanded scale-up capabilities and large scale manufacturing in lower cost environments.

Total consideration paid was US$41m, including assumption of certain liabilities. AMRI financed the transaction with cash on hand. The acquisition is expected to add between $13m and $14m to AMRI’s revenue in 2014. AMRI anticipates full year run-rate synergies of approximately $1.5m of EBITDA within 12 months of closing and the acquisition is expected to be accretive to AMRI’s 2014 adjusted diluted EPS in the range of $0.06 to $0.07 per share.