BETHESDA, Md., Oct. 28, 2013 /PRNewswire/ -- American
Capital, Ltd. (Nasdaq: ACAS) ("American Capital") announced today
that it has committed $391 million to
the combination of its portfolio company Cambridge Major
Laboratories Inc. ("CML") with AAIPharma Services Corp.
("AAIPharma"), a leading provider of analytical and formulation
services that support all phases of drug development, and the
related recapitalization of the business. CML is a leading
global provider of complex chemistry-based outsourcing services and
active pharmaceutical ingredient ("API") manufacturing services to
the pharmaceutical and biotechnology industries. American
Capital's investment is comprised of a revolving credit facility,
senior term loan and common and preferred equity.
"AAIPharma's industry leading formulation development and
analytical service offerings complement CML's world-class API
development and manufacturing capabilities, and the combination
creates an industry leading contract development and manufacturing
organization ("CDMO"), which is positioned for significant growth
and expansion," said Kyle Bradford,
American Capital Managing Director. "The combined company
will offer shortened development timelines to clients by
streamlining and linking services from API development and
manufacturing through formulation development and finished drug
manufacturing and packaging for solid oral and parenteral
products."
"American Capital is excited to work with AAIPharma's management
team given its deep experience in the pharmaceutical services space
and a successful track record of driving sustainable growth," said
Ryan Nagim, American Capital Vice
President. "Furthermore, we believe that the combination will
provide pharmaceutical customers with a best-in-class service
offering through a global footprint with operations across
North America and Europe."
AAIPharma, based in Wilmington,
NC, is a leading drug development and manufacturing company
that provides solutions to pharmaceutical, biotech and healthcare
companies. The company has a wide range of formulation
development and analytical testing capabilities in addition to
clinical and commercial manufacturing for drug products.
Since inception, AAIPharma has completed over 600 U.S. and E.U.
regulatory filings. AAIPharma has five U.S. and E.U.
certified facilities in North
Carolina, South Carolina,
New Jersey and Missouri.
In December 2012, American Capital
committed $212 million in the One
Stop Buyout® of CML. Based in Germantown, WI, CML is an API development and
manufacturing organization serving a broad customer base of
pharmaceutical, biotech and generic drug companies. The
company operates from FDA inspected facilities in the U.S. and
Europe. In 2012, the company developed and supplied over 100
APIs for drugs in the early and mid-stages of development and 14
APIs for drugs that are commercially available. The products
CML manufactures span a wide range of therapeutic categories from
cancer to neurology to rare genetic diseases. For more
information about American Capital's investment in CML, visit
http://www.americancapital.com/our-portfolio/cambridge-major-laboratories-inc.
Brian Scanlan, CML President and
CEO, stated, "This combination is a significant step for both CML
and AAIPharma, creating a first of its kind merger of two equals:
two highly respected, market leading firms in the CDMO space.
With expertise in API development, analytical chemistry
formulation and manufacturing, the combined company allows for
drugs to be designed more efficiently from early stage development
to commercialization."
Scanlan added, "We are pleased that our financial partner
American Capital has supported our growth plan and strategic vision
with their additional investment to complete this
transaction. Their one stop financing ability, expertise in
growing portfolio companies and deep knowledge of the life sciences
industry make them a valuable partner for the combination of CML
and AAIPharma and our future growth."
"We look forward to joining the American Capital family of
portfolio companies and leveraging their expertise in facilitating
organizational growth and integration," said Pat Walsh, AAIPharma CEO. "We believe the
merger of AAIPharma and CML will offer customers a reliable partner
that can address the majority of their pharmaceutical development
and manufacturing requirements."
Jefferies LLC acted as financial advisor to CML. Morgan
Stanley acted as financial advisor to AAIPharma.
Since its August 1997 IPO,
American Capital and its affiliated funds have invested
approximately $31 billion in over 550
portfolio companies both directly and in support of leading
financial partners in change of control transactions. For
more information about American Capital's portfolio, visit
http://www.americancapital.com/our-portfolio.
ABOUT AMERICAN CAPITAL
American Capital, Ltd. (Nasdaq:
ACAS) is a publicly traded private equity firm and global asset
manager. American Capital, both directly and through its
asset management business, originates, underwrites and manages
investments in middle market private equity, leveraged finance,
real estate, energy & infrastructure and structured
products. American Capital manages $21
billion of assets, including assets on its balance sheet and
fee earning assets under management by affiliated managers, with
$119 billion of total assets under
management (including levered assets). Through an affiliate,
American Capital manages publicly traded American Capital Agency
Corp. (Nasdaq: AGNC) with approximately $10
billion of net book value and American Capital Mortgage
Investment Corp. (Nasdaq: MTGE) with approximately $1 billion of net book value. From its
eight offices in the U.S. and Europe, American Capital and its affiliate,
European Capital, will consider investment opportunities from
$10 million to $750 million.
For further information, please refer to
www.AmericanCapital.com.
This press release contains forward-looking statements. The
statements regarding expected results of American Capital are
subject to various factors and uncertainties, including the
uncertainties associated with the timing of transaction closings,
changes in interest rates, availability of transactions, changes in
regional, national or international economic conditions, or changes
in the conditions of the industries in which American Capital has
made investments.
Contact:
Kyle
Bradford, Managing Director, Buyouts Group (214)
273-6630
Ryan Nagim, Vice President, Buyouts
Group (214) 273-6630
SOURCE American Capital, Ltd.