Deal includes The Specials Laboratory and Craig & Hayward in Northumberland, UK
Professional Compounding Centers of America (PCCA), based in Houston, Texas, has bought the specials business of UDG Healthcare and Arjun Products for £23.5m.
The specials business comprises The Specials Laboratory (TSL) and Craig & Hayward. Additionally, Weybridge, Surrey-based Arjun Products, which offers a range of dermatology creams, mineral supplements and ear and nose drops to the UK pharmacy market, is included in the transaction.
Dublin, Ireland-based UDG Healthcare said that while it believes these businesses have the potential to deliver strong growth over the coming years, it has decided that the manufacture and distribution of specials falls outside its core areas of operation.
Northumberland-based TSL manufactures and delivers unlicensed medicines ('specials') to thousands of community and hospital pharmacists and doctors throughout the UK and Ireland. It also supplies 'special obtain' items when they are not available through traditional wholesalers, while Craig & Hayward supplies specials to pharmacies in England and Wales.
PCCA bring years of experience of compounding products and services so will no doubt add a great deal of value to our company
Sharon Griffiths, Managing Director of The Specials Laboratory and Craig & Hayward, said: 'We are very pleased to have become part of the PCCA family and this announcement heralds a very exciting era for our customers and our staff.
'With tough market conditions in specials over the last few years, we have broadened our service offerings to create a much stronger and sustainable business model that was no doubt a major factor in PCCA’s decision to purchase our business.
'PCCA bring years of experience of compounding products and services so will no doubt add a great deal of value to our company. Furthermore, there is a great cultural fit between the companies that will only make us stronger moving forward.
'PCCA already has a significant presence in the US, Canada and Australia and has long held the ambition to serve customers around the world.'
The Northumberland-based businesses have recently launched a recruitment drive that has taken the company to around 130 staff. This has coincided with the completion of investment into new chemistry facilities and laboratory space at the organisation’s headquarters in Prudhoe.
Specials are prescribed when a patient needs a very specific formulation of a drug that is not available as a standard licensed medicine.
The Specials Laboratory also manufactures veterinary specials, products for hospital-based clinical trials and supplies custom over labelled medicines and special obtain items.
'These are three successful, well-regarded companies that are an excellent business and cultural match for our own,' said Jim Smith, PCCA's President. 'They will continue to operate as they do today while creating a two-way avenue for product, technology and idea sharing between us.'
Ari Pailakian, PCCA's Vice President of Sales, said: 'I'm excited for our nearly 4,000 independent community pharmacy members in the US, Canada and Australia and the opportunity to deliver new and innovative technologies from the UK to them.'
PCCA previously acquired several companies that now comprise its PCCA Canada, PK Software and Wellness Works business units.