Siegfried to Acquire Small Molecules Drug Substance Capacity in the US
Siegfried signed binding agreements to acquire three drug substance sites in the US and Australia.
Siegfried, a global contract development and manufacturing organization (CDMO) for the pharmaceutical industry, has signed binding agreements with an affiliate of SK Capital Partners to acquire the drug substance business of the Noramco Group and Extractas Bioscience. The acquired businesses include three high-quality small molecule drug substances sites with approximately 400 employees:
- Noramco, a large, commercial-scale manufacturing site in Wilmington, Delaware (US)
- Purisys, a clinical API development and manufacturing facility located in Athens, Georgia (US)
- Extractas Bioscience, a leading manufacturer of purified products based in Westbury, Tasmania (AU)
The acquisition supports Siegfried’s EVOLVE+ strategy by expanding the company’s operations and capacity in the United States, the world’s largest pharmaceutical market. Siegfried plans to enhance its exclusive synthesis business in the US by optimizing controlled substance production across the newly acquired Wilmington site and its Pennsville site. Together with the early-phase development capabilities of Purisys and the extraction expertise of Extractas Bioscience, the acquisition broadens Siegfried’s portfolio and strengthens its position in the pharmaceutical manufacturing value chain.
Marcel Imwinkelried, Chief Executive Officer: “This transaction marks a decisive next step in the execution of our EVOLVE+ strategy and is aligned with our highly selective, disciplined value accretive approach to M&A. By adding exceptional US-based capabilities, we will become even more attractive to both existing and new customers, creating new opportunities to accelerate profitable growth. The combined capacity and expertise of the three sites strengthen our position as a leading CDMO for small-molecule drug substances, and I look forward to fully realizing this value together with our new colleagues.”
The valuation of the acquired business is below 10 times Enterprise Value / EBITDA. The acquisition will be financed through existing and new debt instruments. Subject to customary closing conditions, the transaction is expected to close later this year.
