Cambrex announced a definitive agreement Monday of a deal that’s expected to close this quarter. The acquisition will be funded with a combination of capital on hand and borrowings against Cambrex’s $500 million senior credit facility.
Cambrex (NYSE: CBM) is a publicly traded manufacturer of pharmaceutical products. Halo provides drug product development and commercial manufacturing services, specializing in oral solids, liquids, creams, sterile and non-sterile ointments. Halo’s core competencies include developing and manufacturing highly complex and difficult to produce formulation. Cambrex officials said the acquisition of Halo will allow it to enter new market segments.
“Halo’s expertise in oral solids, liquids, creams and ointments fits well with our [current] business and brings a substantial new customer base and pipeline of small molecule products,” Cambrex CEO Steve Klosk said. “We believe the combination of Cambrex and Halo will attract new customers to the combined company and allow us to more efficiently broaden our pipeline of products, while continuing to capitalize on the rapidly growing pharmaceutical services market.”
Halo also has a manufacturing facility in Montreal. Its total 450-person workforce will join Cambrex’s 1,200 employees across the U.S. and Europe.