Piramal to buy Ash Stevens

Piramal Enterprises has decided to acquire 100% in US-based contract development and manufacturing organisation  Ash Stevens in an all-cash deal for a consideration of $42.95 million an earn-out consideration capped at $10 million.

The potential transaction is expected to be completed by the end of August. The transaction is not subject to any regulatory approvals and no related party of PEL has any interest in Ash Stevens, Piramal said. Located in Riverview, Michigan, Ash Stevens has over 50 years of experience in contract manufacturing, and serves several biotech, mid-size pharma, and large pharmaceutical clients worldwide. The company has over 60,000 sq feet of facilities, eight chemical drug development and production laboratories, and six full-scale production areas.

 “The acquisition of Ash Stevens fits well with our strategy to build an asset platform that offers value to our partners and collaborators. Currently, around 25% of the molecules in clinical development are potent. Our clients are looking for reliable partners that can assist them in advancing these programmes forward,” Piramal Pharma Solutions chief executive officer Vivek Sharma said.
 
We expect this acquisition to also be synergistic with our antibody drug conjugates (ADCs) and injectable business. We can now fulfill client requirements for a single source of supply for both high potent APIs and drug products, Sharma added.
 
According to Ash Stevens chief executive officer Stephen Munk, the two companies have already identified areas of value creation. “We look forward to working with the Piramal leadership and management team, to develop API solutions that benefit customers and improve the lives of patients. We have already identified areas where we can create significant value together, and will be moving forward rapidly to achieve those objectives,” Munk said.
 
Wells Fargo Securities served as exclusive financial advisor to Ash Stevens, with legal counsel provided by Morrison & Foerster, PEL added.