Arlington Capital Partners has sold its portfolio company Micron Technologies, a provider of micronization services to the pharmaceutical industry, to Catalent Pharma Solutions. Arlington Capital acquired Micron in March 2013.
“Micron is a trusted partner to global pharma and a strategic provider of critical solubility enhancement services for many of the industry’s leading commercial pharmaceuticals and drug candidates. The ability of the Micron team to develop, and capitalize on, the company’s strategic position at the beginning of the drug formulation pathway produced tremendous growth, and enabled this highly successful transaction,” said Matthew Altman, a Partner at Arlington Capital.
The process of micronization is used to reduce particles down to the micrometer or, in some cases, nanometer size, to improve the bioavailability of poorly soluble active pharmaceutical ingredients (APIs). Micronization is most often accomplished by using fluid energy, such as a jet mill, but can also be achieved through mechanical means using a bead mill. A wide range of drug types, including solid dosage, injectable, ocular, and inhaled products, can benefit from micronization.
Micron Technologies provides both jet milling and mechanical milling micronization services. Other services include containment processing, and analytical and testing services. Micron is led by its Chief Executive Officer, Joseph Drost, who has been with the company since 2009 and has over 25 years of pharmaceutical industry experience. The company is headquartered near Philadelphia in Malvern, PA with additional operations in Dartford, UK (www.microntech.com).
“Arlington invested significant resources and capital into Micron, including increasing the company’s technological capabilities, capacity and significantly expanding the salesforce,” said David Wodlinger, a Principal at Arlington Capital. “Management worked tirelessly on the strategy we developed together at the beginning of our investment, and the successful sale of the business is truly a testament to their steadfast work.”
Arlington Capital Partners has $1.5 billion of committed capital and focuses on buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include aerospace and defense, government services and software, healthcare services, business services, and education and training. The firm is based in Washington, DC (www.arlingtoncap.com).
“During our partnership with Arlington, Micron posted record growth and profitability, brought new capabilities to market, and significantly invested in our people. Arlington’s strategic counsel and capital support during this remarkable time has been a great asset,” said Joseph Drost, Micron Technologies’ Chief Executive Officer. “The future looks very bright and we are very pleased to be joining Catalent as we seek to continue to build upon our success.”
Catalent Pharma Solutions (NYSE: CTLT) develops and provides delivery technologies for drugs, biologics, and consumer health products. The company is headquartered in Somerset, NJ (www.catalent.com).
Fairmount Partners (www.fairmountpartners.com) represented Micron on the transaction and Greenberg Traurig provided legal counsel to the company.
© 2014 PEPD • Private Equity’s Leading News Magazine • 11-19-14
