Contract drug manufacturer and research company Albany Molecular Research Inc said on Tuesday it had agreed to be taken private by buyout firms Carlyle Group LP and GTCR LLC for about $922 million in cash. The deal comes amid consolidation in the contract research services industry, which has benefited in recent years from pharmaceutical companies' drive to cut costs, reduce clinical trial durations and expand their research and development presence globally.
Albany Molecular offers a range of contract services for life sciences companies, from discovering new drugs to manufacturing products and active ingredients. Clinical research organizations can prove to be lucrative investments for private equity firms. The company's stockholders will get $21.75 for each share they hold, representing a premium of about 10 percent to the stock's Monday close.
The offer represents a premium of about 61 percent since April 7, when Dealreporter reported that the company was exploring a sale. The company wanted to refinance its balance sheet this year after its $358 million acquisition of Therapeutics SpA, also known as Euticals, William Blair analyst John Kreger wrote in a client note.