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Novacap to acquire PCI Synthesis
Posted on Monday, 25 June 2018 11:30
Novacap has announced plans to purchase PCI Synthesis, a company specialising in pharmaceutical contract development and manufacturing.

Headquartered in Boston, the target claims to be the largest small molecule drug substance maker in New England.

Completion of the deal is subject to customary merger control approval.

PCI Synthesis offers a variety of services, mainly focusing on the manufacturing of new chemical entities and generic active pharmaceutical ingredients, designed to provide the therapeutic effect in drug products.

It generates an annual turnover of USD 32.00 million, with revenue generated from a R&D facility in Devens alongside a manufacturing plant in Newburyport, both located in Massachusetts.

The target’s growth has enabled greater access into the pharmaceutical manufacturing market, which includes the production of large-scale chromatography and controlled substance development.

This is the second acquisition the buyer has announced this month, after confirming plans to invest in Canadian firm Noble Foods Nutrition, a manufacturer of energy bars and nutritional products, for an undisclosed amount last week.

Novacap also claims to be a leading figure in pharmaceutical synthesis, which provides custom made products for a wide variety of markets including the medical, cosmetic and electronic fields.

It achieved sales of USD 1.00 billion at the close of 2017 and employs over 3,000 people worldwide.

Pierre Luzeau, chief executive of the buyer, stated: “The acquisition of PCI Synthesis perfectly fits with our strategic roadmap as it will strengthen our offering to the pharmaceutical industry and provide Novacap with a strong and innovative platform to accelerate our development in the US.”

The company’s purchase of PCI Synthesis will also provide it with more resources in which to promote its products globally, with the target bringing sites and centers that specialise in commercial manufacturing and clinical development.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 1,185 deals targeting other machinery manufacturing providers announced worldwide since the beginning of 2018.

The largest of these involved Xerox raising USD 6.10 billion by the way of a capital increase, whereby Fujifilm Holdings bought stock.

Other companies targeted in this sector include Esco Corporation, Hengli Petrochemical and Ubtech Robotics.

© Zephus Ltd