Investment firm SK Capital pays $110 million for Ireland-based Perrigo’s API business.
Investment firm SK Capital has expanded its portfolio of pharmaceutical companies with the recent purchase of the active pharmaceutical ingredients (API) business of Irish pharmaceutical company Perrigo. SK paid $110 million for the business and also agreed to supply Perrigo certain commercial and pipeline APIs over the long term. The companies expect the deal to be finalized by the end of 2017, at which point the company will change its name from Perrigo API to a new name that has yet to be determined.
SK Capital focuses on the specialty material, chemical and pharmaceutical sectors. Israel-based Perrigo API develops and manufactures generic APIs and finished dosage drugs, with an existing portfolio of companies producing APIs and finished dosage drugs. These include Delaware-based Noramco, Australia-based Tasmanian Alkaloids and New Jersey-based Halo Pharmaceutical; all of the companies operate independently of one another.
SK Capital Managing Director, Aaron Davenport, commented: “Perrigo API is a proven industry leader with strong innovation and manufacturing capabilities and a quality and customer-centric culture. The skills and expertise of the leadership team, dedicated employee-base and the quality of the manufacturing facilities have enabled the Business to establish a strong market position.”
SK Capital will work with the management of Perrigo API with the goal of revenue growth. Noted Iftach Seri, one of the incoming members of Perrigo API’s Board of Directors: “We believe tremendous value can be created through further investments in people, company culture, processes and technologies. We look forward to collaborating with the management team and employees to support their continued growth and building a successful working relationship with Perrigo through our long-term supply agreement.
Perrigo recently sold its India API business to India-based pharmaceutical company Strides Shasun in April 2017.