H.I.G. Closes Sale of AMPAC

H.I.G. Closes Sale of AMPAC

H.I.G. Capital has completed the sale of its portfolio company AMPAC Fine Chemicals to 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, with over $200 million of annual revenue, 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, CA (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 in December 2015 to Huntsman Family Investments, the private investment platform for the Jon M. Huntsman, Sr. family.

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.

“AFC is a terrific organization with exceptional leadership. Dr. Aslam 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,” said Fraser Preston, a Managing Director of H.I.G. “AFC has delivered an outstanding return for H.I.G. and its investors. Partnering with a respected global organization like SK Holdings represents a terrific next step for AFC’s customers, partners, and employees, and we look forward to the company’s continued success.”

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).

“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, CA facility; start AMPAC Analytical; restart operations at our La Porte, TX site; and acquire a 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. Thanks to our affiliation with H.I.G., AFC is a much bigger and a more diversified company today than it was in 2014 – our customer base is broader and our relationships with them are deeper. As a result, our development pipeline is bigger than it has ever been.”

SK Holdings, the buyer of AFC, is an international conglomerate with operations in energy and chemicals, information and telecommunications, and semiconductors. The company is headquartered in Seoul, South Korea (www.sk.com).

© 2018 Private Equity Professional | September 5, 2018

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