Alcami, a provider of fully-integrated custom end-to-end solutions for the pharmaceutical and biotechnology industries, has reached an agreement to be acquired by Madison Dearborn Partners (MDP).
MDP, a private equity firm based in Chicago, will acquire a majority ownership position in Alcami from existing shareholder Ares Capital.
Alcami's management team, led by CEO, President, and Chairman, Dr Stephan Kutzer, will continue to guide the company. The transaction is expected to be completed in the third quarter of 2018, pending customary closing conditions.
"The entire Alcami team is excited to further enhance and evolve the small to mid-size pharma growth engine. As we enter our next stage of progress as a leading global, clinically-focused and fully-integrated contract development and manufacturing organization (CDMO), we are proud to partner with MDP to expand our talented employee base and further develop our capabilities. There's no doubt we will continue to serve our clients with dedication, innovative solutions, and our unique, flexible, transparent, and proactive approach," said Dr Kutzer.
"MDP's extensive experience and strong relationships in the health care and life sciences sectors make them an ideal partner. Looking forward, we will continue to be guided by prioritizing efficient, rapid, and reliable development, while delivering the highest quality and best customer experience in the industry."
The company provides fully-integrated end-to-end outsourcing opportunities, which offer a faster pathway for products through the clinic toward commercialisation, as well as individualised development and manufacturing services.
"We are excited to support Stephan, Alcami's world-class management team, and its highly committed employee base," said Tim Sullivan, MD and Head of MDP's Health Care team.
"They have a demonstrated ability to grow organically, deliver outstanding customer service, and respond to changing industry dynamics. They have recently completed significant capital expenditure programs to add further services and capabilities, and today the Company has a highly diversified product portfolio with industry leading positions in fast-growing market segments."
"This investment represents an attractive opportunity for us to support and advance an end-to-end business model that we believe uniquely serves the needs of a large and growing customer base," said Jason Shideler, a Director on MDP's Health Care team.
"We see a wide range of opportunities to expand via organic growth and acquisition within Alcami's highly fragmented market. We are excited to partner with Stephan and his team and support the talented employees throughout the Alcami organization."
As part of the transaction, Ares Capital is acting as lead debt financing arranger, and is maintaining a minority equity position in the company.