H.I.G. Capital has agreed to sell AMPAC Fine Chemicals to South Korean conglomerate SK Holdings.
AMPAC Fine Chemicals (AFC) is a supplier of high value-added active pharmaceutical ingredients and intermediates used in treating diseases such as cancer, central nervous system (CNS) disorders and certain viral infections. Customers of AFC include blue-chip pharmaceutical and biotech companies.
The company has four facilities, one each in Rancho Cordova and El Dorado Hills, CA; La Porte, TX; and Petersburg, VA. AFC, led by CEO Dr. Aslam Malik, is headquartered in Rancho Cordova (www.ampacfinechemicals.com).
H.I.G. acquired AFC in February 2014 as part of its acquisition of publicly-traded American Pacific Corporation. AFC’s sister company, AMPAC Specialty Chemicals, was sold to Huntsman Family Investments, the private investment platform for the Jon M. Huntsman, Sr. family, in December 2015.
“AFC is a terrific organization with exceptional leadership,” said Fraser Preston, Managing Director of H.I.G. “Dr. Malik and his team have transformed the business since we acquired it – adding technical capabilities, diversifying the customer base, building an expanded and flexible manufacturing footprint and delivering industry-leading organic growth every year since our acquisition.”
Under H.I.G.’s ownership, AFC expanded the manufacturing footprint at its Rancho Cordova facility, launched AMPAC Analytical, a provider of pharmaceutical product analysis and testing services; acquired a state-of-the-art plant in Petersburg, VA from UniTao Pharmaceuticals in October 2016; and enhanced AFC’s product pipeline.
“H.I.G. has been thoughtful and supportive of AFC since our partnership began several years ago,” said Dr. Malik. “In addition to supporting AFC with growth capital; allowing us to expand our Rancho Cordova facility; start AMPAC Analytical; restart operations at our La Porte site; and acquire the state-of-the-art plant in Petersburg, VA, H.I.G. has provided us with the freedom and flexibility needed to grow the business and served as a dynamic thought partner to our senior leadership team.”
H.I.G. specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing and service businesses. H.I.G. has more than $25 billion of capital under management. The firm is based in Miami with additional offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, London, Hamburg, Madrid, Milan, Paris, Bogotá, Mexico City and Rio de Janeiro (www.higcapital.com).
SK Holdings is an international conglomerate with operations in energy and chemicals, information and telecommunication, and semiconductors. The company is headquartered in Seoul, South Korea (www.sk.com).
© 2018 Private Equity Professional | July 18, 2018
