Piramal Enterprises announces acquisition of US based Ash Stevens Inc.

For USD 42.95 million plus earn out consideration upto USD 10 million

Piramal Enterprises announced that its wholly owned subsidiary in the US has entered into an agreement to acquire 100% stake in Ash Stevens Inc. ('Ash Stevens' or 'the Company'), a US based Contract Development and Manufacturing Organisation ('CDMO'), in an all cash deal for a total consideration of USD 42.95 million plus an earn-out consideration capped at USD 10 million, subject to achievement of certain EBITDA targets, payable over the next six months. This potential transaction is expected to be completed by end of August.

Founded in 1962 and headquartered in Riverview, Michigan, Ash Stevens is a full service CDMO focused on development and manufacturing of high potency active pharmaceutical ingredients ('APIs'). The Company primarily operates from a FDA approved commercial manufacturing facility located in Riverview, Michigan, USA. The Company also owns another development facility in Detroit, Michigan.

 

This acquisition adds niche potent molecule manufacturing capabilities to the portfolio of services offered by PEL's Pharma Solutions business.

Ash Stevens has 12 FDA approvals for innovator small molecule APIs and has a pipeline of development products. The Riverview Facility has approvals from US, EU, Australia, Japan, Korea, Mexico regulatory agencies.

Ash Stevens had revenue of ~USD 18.3 million in FY15 (twelve months ending September 30).

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