Madison Dearborn Partners has agreed to acquire Alcami Corporation from Ares Capital. No financial terms were disclosed. The deal is expected to close in the third quarter of this year. North Carolina-based Alcami is a provider of custom end-to-end solutions for the pharmaceutical and biotechnology industries.
DURHAM, N.C., June 1, 2018 /PRNewswire/ — Alcami Corporation (“Alcami” or the “Company”), a leading provider of fully-integrated custom end-to-end solutions for the pharmaceutical and biotechnology industries, today announced it has reached an agreement to be acquired by Madison Dearborn Partners, LLC (MDP). MDP, a leading private equity firm based in Chicago, will acquire a majority ownership position in Alcami from existing shareholder Ares Capital Corporation (NASDAQ: ARCC) (“Ares Capital”). Alcami’s management team, led by Chief Executive Officer, President, and Chairman, Dr. Stephan Kutzer, will continue to guide the Company. The transaction is expected to be completed in the third quarter of 2018, pending customary closing conditions.
“The entire Alcami team is excited to further enhance and evolve the small to mid-size pharma growth engine. As we enter our next stage of progress as a leading global, clinically-focused and fully-integrated contract development and manufacturing organization (CDMO), we are proud to partner with MDP to expand our talented employee base and further develop our capabilities. There’s no doubt we will continue to serve our clients with dedication, innovative solutions, and our unique, flexible, transparent, and proactive approach,” said Dr. Kutzer. “MDP’s extensive experience and strong relationships in the health care and life sciences sectors make them an ideal partner. Looking forward, we will continue to be guided by prioritizing efficient, rapid, and reliable development, while delivering the highest quality and best customer experience in the industry.”
Headquartered within Research Triangle Park (RTP) in Durham, North Carolina, with 10 locations across the globe, Alcami is a world-class CDMO and the first company to provide a solution tailored to small and mid-size pharmaceutical and biotechnology companies. The Company provides fully-integrated end-to-end outsourcing opportunities, which offer a faster pathway for products through the clinic toward commercialization, as well as individualized development, and manufacturing services. Alcami’s services include active pharmaceutical ingredient (API) development and manufacturing, solid state chemistry, formulation development, analytical development and testing services, drug product manufacturing (oral solid dose and parenteral), and packaging and stability services.
“We are excited to support Stephan, Alcami’s world-class management team, and its highly committed employee base,” said Tim Sullivan, a Managing Director and Head of MDP’s Health Care team. “They have a demonstrated ability to grow organically, deliver outstanding customer service, and respond to changing industry dynamics. They have recently completed significant capital expenditure programs to add further services and capabilities, and today the Company has a highly diversified product portfolio with industry leading positions in fast-growing market segments.”
“This investment represents an attractive opportunity for us to support and advance an end-to-end business model that we believe uniquely serves the needs of a large and growing customer base,” said Jason Shideler, a Director on MDP’s Health Care team. “We see a wide range of opportunities to expand via organic growth and acquisition within Alcami’s highly fragmented market. We are excited to partner with Stephan and his team and support the talented employees throughout the Alcami organization.”
As part of the transaction, Ares Capital is acting as lead debt financing arranger, and is maintaining a minority equity position in the Company.
William Blair & Company is Alcami’s exclusive financial advisor, while Barclays and Jefferies LLC provided financial advice to MDP.
Alcami is a world-class fully integrated end-to-end contract development and manufacturing organization (CDMO) headquartered in North Carolina, with executive offices in Durham and Wilmington. With approximately 1,000 employees operating at 10 global locations, Alcami provides customizable and innovative services to small and mid-size pharmaceutical and biotechnology companies by offering individualized and integrated services across multiple areas. We connect our clients with innovative solutions for API development and manufacturing, solid-state chemistry, formulation development, analytical development and testing services, clinical and commercial finished dosage form manufacturing (oral solid dose and parenteral), packaging, and stability services. For more information, please visit alcaminow.com.
ABOUT MADISON DEARBORN PARTNERS, LLC
Madison Dearborn Partners, LLC (MDP), based in Chicago, is a leading private equity investment firm in the United States. Since MDP’s formation in 1992, the firm has raised seven funds with aggregate capital of approximately $23 billion and has completed approximately 130 investments. MDP is currently investing out of its most recent fund, $4.4 billion MDCP Fund VII, in businesses across a broad spectrum of industries, including health care; basic industries; business and government software and services; financial and transaction services; and telecom, media and technology services. For more information, please visit mdcp.com.
ABOUT ARES CAPITAL CORPORATION
Ares Capital is a leading specialty finance company that provides one-stop debt and equity financing solutions to U.S. middle market companies and power generation projects. Ares Capital originates and invests in senior secured loans, mezzanine debt and, to a lesser extent, equity investments through its national direct origination platform. Ares Capital’s investment objective is to generate both current income and capital appreciation through debt and equity investments primarily in private companies. Ares Capital has elected to be regulated as a business development company (“BDC”) and is the largest BDC by both market capitalization and total assets. Ares Capital is externally managed by a subsidiary of Ares Management, L.P. (NYSE: ARES), a publicly traded, leading global alternative asset manager. For more information about Ares Capital Corporation, visit www.arescapitalcorp.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.