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Ridgemont inks fourth deal since spin-out

The firm has purchased a majority stake in Gallus BioPharmaceuticals, its fourth acquisition since spinning out of Bank of America last August.

Ridgemont Equity Partners has agree to purchase a majority stake in Gallus BioPharmaceuticals. Terms of the transaction were not disclosed, but a source close to the situation put the value of the deal at less than $75 million.

Gallus is a contract manufacturer of clinical and commercial-grade biologics products. The investment from Ridgemont facilitated the company’s acquisition of an FDA-approved biologics manufacturing plant in St. Louis.

“The thing we liked about a contract manufacturer in the biologic space is that the industry is just growing incredibly quickly,” Ridgemont principal Jack Purcell told Private Equity International. “There are a tremendous number of biologics drugs that are in the pipeline that over the next 3 to 10 years need to find a home inside some type of manufacturing organisation”.

The Ridgemont investment team has invested roughly 20 percent of its capital in healthcare historically, with healthcare companies typically comprising roughly 20 percent of the entire portfolio.

Gallus represents Ridgemont’s fourth acquisition since spinning out of Bank of America in August of 2010. The firm, which is investing with seed capital from the bank, made its first three investments in the fiber communications sector. Ridgemont is also managing about $1.5 billion of Bank of America’s legacy private equity assets.