Contract Services

Alcami to become industry leading CDMO following acquisition by Madison Dearborn Partners

Alcami Corporation, a leading provider of fully-integrated custom end-to-end solutions for the pharmaceutical and biotechnology industries, today announced it has reached an agreement to be acquired by Madison Dearborn Partners (MDP).

MDP, a leading private equity firm based in Chicago, will acquire a majority ownership position in Alcami from existing shareholder Ares Capital Corporation. Alcami’s management team, led by Chief Executive Officer, President, and Chairman, Dr. Stephan Kutzer, will continue to guide the Company. The transaction is expected to be completed in the third quarter of 2018, pending customary closing conditions.
“The entire Alcami team is excited to further enhance and evolve the small to mid-size pharma growth engine. As we enter our next stage of progress as a leading global, clinically-focused and fully-integrated contract development and manufacturing organization (CDMO), we are proud to partner with MDP to expand our talented employee base and further develop our capabilities. There’s no doubt we will continue to serve our clients with dedication, innovative solutions, and our unique, flexible, transparent, and proactive approach,” said Dr. Kutzer. “MDP’s extensive experience and strong relationships in the health care and life sciences sectors make them an ideal partner. Looking forward, we will continue to be guided by prioritizing efficient, rapid, and reliable development, while delivering the highest quality and best customer experience in the industry.”

Headquartered within Research Triangle Park (RTP) in Durham, North Carolina, with 10 locations across the globe, Alcami is a world-class CDMO and the first company to provide a solution tailored to small and mid-size pharmaceutical and biotechnology companies. The Company provides fully-integrated end-to-end outsourcing opportunities, which offer a faster pathway for products through the clinic toward commercialization, as well as individualized development, and manufacturing services. Alcami’s services include active pharmaceutical ingredient (API) development and manufacturing, solid state chemistry, formulation development, analytical development and testing services, drug product manufacturing (oral solid dose and parenteral), and packaging and stability services.

“We are excited to support Stephan, Alcami’s world-class management team, and its highly committed employee base,” said Tim Sullivan, a Managing Director and Head of MDP’s Health Care team. “They have a demonstrated ability to grow organically, deliver outstanding customer service, and respond to changing industry dynamics. They have recently completed significant capital expenditure programs to add further services and capabilities, and today the Company has a highly diversified product portfolio with industry leading positions in fast-growing market segments.”

“This investment represents an attractive opportunity for us to support and advance an end-to-end business model that we believe uniquely serves the needs of a large and growing customer base,” said Jason Shideler, a Director on MDP’s Health Care team. “We see a wide range of opportunities to expand via organic growth and acquisition within Alcami’s highly fragmented market. We are excited to partner with Stephan and his team and support the talented employees throughout the Alcami organization.”

As part of the transaction, Ares Capital is acting as lead debt financing arranger, and is maintaining a minority equity position in the Company.

William Blair & Company is Alcami’s exclusive financial advisor, while Barclays and Jefferies LLC provided financial advice to MDP.