Arsenal buys pharma co from Wyeth for $81m

The New York firm acquires Scientific Protein Laboratories, a maker of ingredients for end-use pharmaceuticals, in its fifth portfolio acquisition for its debut fund, closed last June.

New York-based private equity firm Arsenal Capital Partners announced the acquisition of Scientific Protein Laboratories from global pharmaceutical giant Wyeth in a deal worth $81 million (€63 million).

 

Terms of the deal were not disclosed, according to a press release. Ableco Finance, an affiliate of New York-based distressed specialist Cerberus Capital Management, provided debt financing for the transaction.

 

SPL manufactures ingredients used in the formulation of finished pharmaceutical products. Its products include heparin API, which is used in drugs to treat thrombosis, embolism, acute coronary syndromes and surgical recoveries involving implants. SPL also produces pancreatin API, used to treat pancreatic deficiency of cystic fibrosis and other digestive disorders.

 

“SPL has a solid reputation in a large and profitable sector,” Arsenal managing director Terry Mullen said. “We see the middle-market buyout arena as solid and improving.”

The purchase represents the fifth portfolio company for Arsenal, which was formed in 2001 and closed its debut fund last June on $300 million. The firm makes investments in three primary sectors: specialty manufacturing, specialty chemicals and healthcare/pharmaceuticals. Arsenal’s prior acquisition was in November, when the firm bought Rutherford Chemicals from publicly traded Cambrex Corporation. Rutherford provides more than 450 fine and specialty chemicals to customers in end markets, including pharmaceuticals, agriculture, personal care and industrials.