All of the outstanding shares of Grafton-based Cedarburg Pharmaceuticals Inc. have been acquired by Albany, N.Y.-based Albany Molecular Research Inc. for $38.2 million. AMRI also assumed $2.8 million in liabilities.
Cedarburg Pharmaceuticals develops and manufactures active pharmaceutical ingredients for both generic and branded medications. It fits into AMRI’s goal to become the leading supplier of custom and complex drug development services and products to the pharmaceutical industry.
“We are very excited to be joining efforts with Cedarburg as they bring a unique blend of expertise in complex API, a scalable business infrastructure and extensive customer relationships that will augment our existing capabilities and services,” said William S. Marth, AMRI’s president and chief executive officer. “This transaction represents an important first step in building out our API capabilities, broadens our offerings and customer base and provides us with an ideal platform to pursue additional value creation opportunities.”
Cedarburg expects $19 million in 2014 revenue and an adjusted EBITDA of $5.5 to $5.7 million. The transaction is expected to close in early April, and add about $13 million to the AMRI’s 2014 revenue.
Cedarburg will continue to operate independently under AMRI’s API segment. Chuck Bolan, co-founder and executive vice president of business development, will lead the Cedarburg operations, reporting to George Svokos, AMRI’s senior vice president of sales and general manager.
“The company’s board of directors would like to thank Tony Laughrey, CEO, and his management team for their efforts in bringing the company to this point,” said Theron Odlaug, executive chairman of Cedarburg.
Laughrey added: “It has been my pleasure to work with such a dedicated group of employees over the last seven years and I am sure the combination with AMRI will be welcomed by our customers.”