MDP Buys Alcami from Ares Capital
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MDP Buys Alcami from Ares Capital

Madison Dearborn Partners (MDP) has agreed to acquire Alcami Corporation, a contract developer and manufacturer of pharmaceutical drug products, from Ares Capital.

Alcami’s services include development and manufacturing, solid state chemistry, formulation development, analytical development and testing services, drug product manufacturing (oral solid dose and parenteral), packaging and labeling, and distribution. Customers of Alcami include small and mid-size pharmaceutical and biotechnology companies. The company is headquartered in Durham, NC, with nine additional locations including a manufacturing facility in the Netherlands and a sales office in Japan (www.alcaminow.com).

Alcami was originally a portfolio company of American Capital but became part of the Ares’ portfolio when American Capital was acquired by Ares in January 2017. As part of the sale to MDP, Ares is acting as the lead debt financing arranger, and it is maintaining a minority equity position in Alcami.

Alcami’s management team, led by CEO Dr. Stephan Kutzer, will continue to lead the company under MDP ownership. “The entire Alcami team is excited to further enhance and evolve the small to mid-size pharma growth engine. As we enter our next stage of progress as a leading global, clinically-focused and fully-integrated contract development and manufacturing organization (CDMO), we are proud to partner with MDP to expand our talented employee base and further develop our capabilities,” said Dr. Kutzer. “MDP’s extensive experience and strong relationships in the healthcare and life sciences sectors make them an ideal partner.

“We are excited to support Stephan, Alcami’s world-class management team, and its highly committed employee base,” said Tim Sullivan, a Managing Director and Head of MDP’s Health Care team. “They have a demonstrated ability to grow organically, deliver outstanding customer service, and respond to changing industry dynamics. They have recently completed significant capital expenditure programs to add further services and capabilities, and today the company has a highly diversified product portfolio with industry-leading positions in fast-growing market segments.”

Madison Dearborn (MDP) invests in privately held or publicly traded companies in the following sectors: basic industries; business and government software and services; financial and transaction services; health care; and telecom, media and technology services. In August 2016 the firm closed its seventh buyout fund at $4.4 billion. Madison Dearborn was founded in 1992 and is based in Chicago (www.mdcp.com).

“This investment represents an attractive opportunity for us to support and advance an end-to-end business model that we believe uniquely serves the needs of a large and growing customer base,” said Jason Shideler, a Director on MDP’s Health Care team. “We see a wide range of opportunities to expand via organic growth and acquisition within Alcami’s highly fragmented market.”

Ares Capital (NASDAQ: ARCC) provides from $30 million to $500 million of senior secured and mezzanine debt to US-based middle market companies that have from $10 million to $250 million in EBITDA. Sectors of interest include business services, consumer products, distribution, food and beverage, healthcare services, information technology services, and light manufacturing (www.arescapitalcorp.com). Ares Capital is part of Los Angeles-based Ares Management (NYSE: ARES) an investor in private equity, leveraged loans, high-yield bonds, distressed debt and private debt (www.aresmgmt.com).

William Blair & Company (www.williamblair.com) is the financial advisor to Alcami.

This transaction is expected to close in the third quarter of 2018.

© 2018 Private Equity Professional | June 1, 2018

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