Aterian Enters Pharma Services Sector with CPL Recapitalization
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Aterian Enters Pharma Services Sector with CPL Recapitalization

Aterian's latest buy was made through its fourth fund which initiated in April 2022 with $830 million of capital

CPL is a contract manufacturer that provides development, manufacturing, packaging, and testing of non-sterile liquid and semi-solid pharmaceutical prescription and regulated OTC products

SOURCE: Getty Images

Aterian Investment Partners has agreed to recapitalize Contract Pharmaceuticals Limited Canada (CPL) a provider of non-sterile liquid and semi-solid dosage forms.

CPL is a contract development and manufacturing organization (CDMO) that provides development, manufacturing, packaging, and testing of non-sterile liquid and semi-solid pharmaceutical prescription and regulated OTC products. The company’s non-sterile liquids products include suspensions, solutions, nasal and topical sprays; and its semi-solid products include lotions, creams, ointments, and gels.

Source: Contract Pharmaceuticals Limited Canada

CPL has longstanding relationships through multiple product lines with 15 of the top 20 global pharmaceutical companies and sells its products in North America, the European Union, Japan, Australia, Mexico, Brazil, and the Middle East.

CPL was founded in 1991 and operates two facilities near Toronto in Mississauga, Ontario, which house the company’s analytical labs, manufacturing suites, and warehouses. CPL’s facilities are registered with the U.S. FDA, Health Canada, and have been inspected by the Japanese Health Authority. There is also a Mutual Recognition Agreement between Canada and the European Union and Australia that allows products to be easily released to those regions.

“CPL is a North American market leader in developing prescription-based products in its categories for some of the most trusted pharmaceutical companies in the world,” said Christopher Thomas, a co-founder and partner at Aterian. “We will continue building on these partnerships and investing behind the CPL management team, product development, and production and manufacturing capabilities.”

“We are very excited to enter this new chapter with Aterian, which has a demonstrated history of supporting companies with a focus on product innovation and partnership,” said Jan Sahai, the CEO of CPL. “With Aterian’s support, we will make continued investments in innovation, capabilities and capacity development that will enable us to keep exceeding customer expectations and further expand our unmatched position in the non-sterile liquid and topical drug products space.”

Aterian invests from $30 million to $150 million in middle market businesses with $50 million to $750 million in revenue and $10 million to $60 million in EBITDA. The firm’s latest fund, Aterian Investment Partners IV LP, initiated in April 2023 with $830 million of committed capital. Aterian has offices in New York City and Coral Gables, Florida.

Source: Contract Pharmaceuticals Limited Canada

“Our partnership with CPL represents our continued investment into the broader healthcare manufacturing space,” said Brian Moore, a principal at Aterian. “Further, CPL has a tremendous heritage of premier expertise and capabilities to offer customers a one-stop shop for all their development, manufacturing, packaging, and testing needs. We look forward to working alongside CPL’s stakeholders on the company’s next stage of growth.”

Philadelphia-based SSG Capital Advisors was the financial advisor to CPL on this transaction.

© 2024 Private Equity Professional | April 2, 2024

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