US-based company Cook Group has reached an agreement to divest its drug manufacturing division Cook Pharmica to Catalent for $950m.
Catalent is a global provider of the latest delivery and development technologies for drugs, biologics, and consumer health products.
Under the deal, $750m will be paid at closing of the transaction and the remaining amount will be paid in equal instalments on each of the next four anniversaries of the closing.
The acquisition is expected to boost the global position of Catalent in the field of biologics development and analytical services, manufacturing and finished product supply.
Catalent chair and CEO John Chiminski said: “The complementary biologics development, biomanufacturing, and fill-finish capabilities of Catalent and Cook Pharmica will provide biopharmaceutical firms with a single, integrated partner supporting a wide range of clinical and commercial needs.”
Established in 2004, Cook Pharmica currently operates an 875,000ft² development and manufacturing unit in Bloomington, Indiana, US.
With an extensive biomanufacturing capacity, the Bloomington facility produces sterile formulation and fill / finish across liquid and lyophilized vials, prefilled syringes, and cartridges.
The facility is expected to help strengthen Catalent’s expertise in cell line engineering, bioconjugate development, analytical services, biomanufacturing, prefilled syringe and blow / fill / seal technologies.
With the completion of the transaction, more than 750 associates from Cook Pharmica will join Catalent’s network of more than 30 sites across five continents.
In addition, Cook Group has signed a purchase agreement for the vacant GE property on Curry Pike to expand its medical device business and reaffirm commitment to Bloomington.
Subject to customary closing conditions, including approval from regulatory authorities, the transaction is expected to be completed in the fourth quarter of this year.
Morgan Stanley Senior Funding is acting as lead arranger for the acquisition financing and JP Morgan Securities is providing a fairness opinion to Catalent, while Fried, Frank, Harris, Shriver & Jacobson is serving as legal counsel to Catalent.
Image: Cook Pharmica exterior. Photo: courtesy of Cook Group.