Michigan-based generic drug and active pharmaceutical manufacturing firm Ash Stevens is to be bought out by Indian giant Piramal Pharma Solutions for up to $53 million.
Ash Stevens, headquartered in Riverview, said it expected the deal to represent “an exciting opportunity” for its customers and employees.
Piramal Pharma, which is headquartered in Mumbai and deals in sterile drug product development and manufacturing services, said Ash Stevens had built a “stellar reputation”.
The firms said they expected the deal to close in late August.
Ash Stevens specializes in contract manufacturing, serving several biotech, mid-size pharma and large pharmaceutical clients all over the world. It was founded in 1962 by chemistry professors from Wayne State University as a spin-off.
Today, Ash Stevens employs 77 workers and has more than 60,000 sq. ft. of facilities.
The company’s chief executive officer Dr. Stephen Munk said: “This represents an exciting opportunity for our customers and employees.
“Piramal has a proven track record of growth and investment in the pharmaceutical services sector and is a global leader in APIs, drug product, and ADC fields. There are tremendous synergies for our customers brought by Piramal’s full service pharmaceutical manufacturing facilities throughout the world and we are excited to be part of a company with such a diverse offering.”
“The acquisition of Ash Stevens fits well with our strategy to build an asset platform that offers value to our partners and collaborators,” said Vivek Sharma, CEO of Piramal Pharma Solutions.
In a statement, Piramal said its wholly-owned U.S. subsidiary would acquire a 100% stake in Ash Stevens, paying $42.95 million plus an earn-out consideration capped at $10 million in an all-cash deal, which is not subject to any regulatory approvals.
Ash Stevens’ revenue was around $18.3 million for the fiscal year 2015, which ended September 30th.
Piramal recently announced plans for a $25 million expansion of its drug facilities in Lexington, Kentucky.
The company wants to expand the site’s capacity for commercial aseptic manufacturing. This will be done by increasing vial filling capability and lyophilisation capacity, as well as upgrades to the associated facilities and utilities, it said.
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