SK Capital has signed an agreement to acquire Perrigo API, the active pharmaceutical ingredients business of publicly-traded Perrigo Company. The transaction is expected to close during the fourth quarter and the company will be renamed prior to closing.
Perrigo API is a developer and manufacturer of generic active pharmaceutical ingredients (APIs) and finished dose forms (a tablet, capsule or solution that contains an API) for the branded and generic pharmaceutical industries. The business was founded in 1987 and has operations primarily located in Israel with supporting functions in the US and India (www.perrigo.com/api).
As part of the agreement, Perrigo and SK Capital have agreed to enter into a long-term supply agreement for Perrigo API to supply multiple existing commercial and pipeline APIs to Perrigo.
“Perrigo API is a proven industry leader with strong innovation and manufacturing capabilities and a quality and customer-centric culture,” said Aaron Davenport, Managing Director at SK Capital. “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 specializes in the specialty materials, chemicals and healthcare sectors and typically invests equity of $100 million to $200 million in each portfolio company. SK Capital’s portfolio companies generate revenues of approximately $6 billion annually and employ approximately 8,700 people. The firm has more than $1.9 billion of assets under management and is based in New York (www.skcapitalpartners.com).
The buy of Perrigo API complements other companies that SK Capital owns and operates in the active pharmaceutical ingredients and finished dose forms value chain including Noramco, Tasmanian Alkaloids and Halo Pharmaceutical, all of which will continue to operate independently post-acquisition.
Four experienced Israeli pharmaceutical executives will be joining the board of directors of Perrigo API in partnership with SK Capital: Itzhak Krinsky, Meron Mann, Iftach Seri and Arik Yaari. These executives bring decades of experience managing pharmaceutical businesses including various roles as executives with Teva Pharmaceutical and Sun Pharma.
“We believe tremendous value can be created through further investments in people, company culture, processes and technologies,” said Mr. Seri. “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 Company (NYSE: PRGO) is an international manufacturer of private label over-the-counter pharmaceuticals based in Allegan, MI (www.perrigo.com).
RBC Capital Markets and Rothschild acted as SK Capital’s joint buy side advisors on this transaction.
© 2017 Private Equity Professional | August 10, 2017
Wynnchurch Capital has completed the sale of Senco, a designer, manufacturer and marketer of branded fastening tools and collated staples, nails and screws, to publicly-traded Kyocera Corporation.
Senco’s products are used in a variety of professional fastening segments including home construction and remodeling, furniture, manufactured housing, and pallets and crating. Senco products are sold through professional distribution outlets in more than 40 countries. The company, led by CEO Ben Johansen, is based in Cincinnati (
Kyocera Corporation (NYSE:KYO), the buyer of Senco, is a supplier of cutting tools, industrial ceramics, electronic components, printers, copiers, solar power generating systems, mobile phones and semiconductor packages. The company was founded as Kyoto Ceramic Company in 1959 and is headquartered in Kyoto, Japan (
Wynnchurch Capital makes investments in middle-market companies that have revenues of $50 million to $1 billion. Sectors of interest include aerospace & defense, automotive, building products, chemicals, food, logistics, energy services & equipment, environmental services, industrial products & services, metals & mining, and paper & packaging. The firm was founded in 1999 and is located in the Chicago suburb of Rosemont with additional offices in Detroit (Bloomfield Hills), Los Angeles (El Segundo), and Toronto (
Gabelli Private Equity Partners (GPE) has been formed by Associated Capital Group (ACG) to invest in leveraged buyouts and restructuring of small and mid-sized companies. ACG will fund the activities of the new firm with up to $150 million of capital.
Sverica Capital Management has acquired a majority interest in Women’s Health USA. This acquisition marks Sverica’s fourth investment from its fourth fund which closed at its $275 million hard cap in March 2016.
Sverica invests from $10 million to $40 million in US or Canadian-based companies with enterprise values under $100 million. Sectors of interest include IT & business services, healthcare services and high value industrial. Sverica was founded in 1993 and has raised over $700 million of capital across four funds. The firm has offices in Boston and San Francisco (
Western Reserve Partners has expanded its investment banking team with the addition of three new professionals.
Mr. Igoe previously worked at Harris Williams & Co. in the technology, media, and telecom group, with a focus on software M&A transactions. He also has prior experience as a consultant at Harbor Research and as a Product Manager for TigerLogic Corporation. Mr. Igoe holds a Master of Business Administration from Dartmouth College and received his Bachelor in Economics from Yale University.
Mr. Siemborski has 11 years of financial advisory experience, most recently serving in the transaction advisory services practice of Ernst & Young. He earned a Bachelor of Business Administration and a Master of Science in Accountancy from Loyola University Chicago.
Mr. Exler joins Western Reserve after serving as an Analyst Intern for the firm last summer. He earned a Bachelor of Science in Finance and Chemistry from John Carroll University.
