Albany Molecular Research To Buy Oso Biopharmaceuticals For $110 Mln In Cash

(RTTNews) - Albany Molecular Research Inc. (AMRI) said Monday that it agreed to acquire all of the outstanding membership interests of Oso Biopharmaceuticals Manufacturing LLC for $110 million in cash.

OsoBio is recognized as a premier contract manufacturer of highly complex injectable drug products, including sterile liquid, suspension and lyophilized formulations.

The acquisition and associated fees are expected to be financed through cash currently held by AMRI, and, subject to Hart-Scott-Rodino clearance and other conditions to closing, is expected to be completed in the third quarter of 2014.

Located in Albuquerque, New Mexico, OsoBio is a trusted, long-time partner to many of the industry's leading pharmaceutical companies.

On a stand-alone basis, OsoBio's forecasted full year 2014 revenue is between $58 million and $60 million, with adjusted EBITDA of between $9 million and $10 million, implying a purchase price multiple of 11 times 2014 adjusted EBITDA at the top end of the range. Adjusted EBITDA excludes any deal related costs or purchase accounting impacts.

AMRI anticipates full year run-rate synergies of approximately $3 million of EBITDA within 12 months of closing. Subject to Hart-Scott-Rodino clearance, the Company anticipates the acquisition will be accretive to 2014 earnings and intends to provide investors with updated 2014 guidance for the combined company when it releases its second quarter 2014 financial results.

OsoBio is expected to continue to operate independently within AMRI's Drug Product business unit. Milton Boyer, the current president and chief executive officer, will lead the OsoBio team and report into Steven Hagen, Ph.D., AMRI's senior vice president of manufacturing and pharmaceuticals.