- Ares inherited Alcami via purchase of American Capital
- Sell-side adviser: William Blair
- Alcami peer on the auction block: French provider Novasep
Alcami‘s pending sale to Madison Dearborn Partners is valued at around $675 million, three people familiar with the matter said.
Chicago’s Madison Dearborn is acquiring a majority stake in Alcami, while existing investor Ares Capital will maintain a minority equity position, an early June announcement said. Financial terms weren’t disclosed in the release.
For Madison Dearborn, which is investing out of Fund VII, a $4.4 billion pool of capital, Alcami marks its first new healthcare platform investment since 2015. At that time, the firm carved out the medical-rehab-products business from Paterson Cos for $715 million in July 2015, subsequently buying and merging it with Performance Health.
Madison Dearborn also owns healthcare consulting firm Kaufman, Hall & Associates and home-infusion company Option Care.
Its deal for Alcami follows an April Buyouts report that unveiled the contract development and manufacturing organization was working with William Blair on a sales process. Barclays and Jefferies advised Madison Dearborn on the transaction, the June announcement said.
At about $675 million, the price tag implies that Alcami commanded a 13.5x multiple of its $50 million in 2017 pro forma adjusted Ebitda.
Alcami offers outsourced drug-development services that help pharma and biotech companies more quickly bring new products to market and navigate the FDA approval process, among other things.
Its executive offices are in Wilmington and Durham, North Carolina, while it operates seven facilities in the U.S. and the Netherlands.
Ares inherited the portfolio company through its $3.4 billion deal for American Capital in January 2017.
Alcami was initially formed in October 2013, when American Capital acquired AAIPharma Services from Water Street Healthcare Partners and merged it with existing portfolio company Cambridge Major Laboratories.
American Capital committed $391 million to the combined entity in connection with the merger, having previously injected $212 million in CML in December 2012.
While Alcami is no longer available for picking, one of its European-based peers remains on the market. Novasep of Lyon, France, hired Lazard to explore its options, Buyouts reported in April.
Representatives of Ares and Alcami didn’t return requests for comment, while Madison Dearborn declined comment.
Action Item: Contact Madison Dearborn at+1 312-895-1001