This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

American Capital Commits $391 Million In The Combination Of Cambridge Major Laboratories And AAIPharma Services

BETHESDA, Md., Oct. 28, 2013 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) ("American Capital") announced today that it has committed $391 million to the combination of its portfolio company Cambridge Major Laboratories Inc. ("CML") with AAIPharma Services Corp. ("AAIPharma"), a leading provider of analytical and formulation services that support all phases of drug development, and the related recapitalization of the business.  CML is a leading global provider of complex chemistry-based outsourcing services and active pharmaceutical ingredient ("API") manufacturing services to the pharmaceutical and biotechnology industries.  American Capital's investment is comprised of a revolving credit facility, senior term loan and common and preferred equity.

"AAIPharma's industry leading formulation development and analytical service offerings complement CML's world-class API development and manufacturing capabilities, and the combination creates an industry leading contract development and manufacturing organization ("CDMO"), which is positioned for significant growth and expansion," said Kyle Bradford, American Capital Managing Director.  "The combined company will offer shortened development timelines to clients by streamlining and linking services from API development and manufacturing through formulation development and finished drug manufacturing and packaging for solid oral and parenteral products."

"American Capital is excited to work with AAIPharma's management team given its deep experience in the pharmaceutical services space and a successful track record of driving sustainable growth," said Ryan Nagim, American Capital Vice President.  "Furthermore, we believe that the combination will provide pharmaceutical customers with a best-in-class service offering through a global footprint with operations across North America and Europe."

AAIPharma, based in Wilmington, NC, is a leading drug development and manufacturing company that provides solutions to pharmaceutical, biotech and healthcare companies.  The company has a wide range of formulation development and analytical testing capabilities in addition to clinical and commercial manufacturing for drug products.  Since inception, AAIPharma has completed over 600 U.S. and E.U. regulatory filings.  AAIPharma has five U.S. and E.U. certified facilities in North Carolina, South Carolina, New Jersey and Missouri.

In December 2012, American Capital committed $212 million in the One Stop Buyout® of CML.  Based in Germantown, WI, CML is an API development and manufacturing organization serving a broad customer base of pharmaceutical, biotech and generic drug companies.  The company operates from FDA inspected facilities in the U.S. and Europe.  In 2012, the company developed and supplied over 100 APIs for drugs in the early and mid-stages of development and 14 APIs for drugs that are commercially available.  The products CML manufactures span a wide range of therapeutic categories from cancer to neurology to rare genetic diseases.  For more information about American Capital's investment in CML, visit http://www.americancapital.com/our-portfolio/cambridge-major-laboratories-inc.

Brian Scanlan, CML President and CEO, stated, "This combination is a significant step for both CML and AAIPharma, creating a first of its kind merger of two equals: two highly respected, market leading firms in the CDMO space.  With expertise in API development, analytical chemistry formulation and manufacturing, the combined company allows for drugs to be designed more efficiently from early stage development to commercialization."

Scanlan added, "We are pleased that our financial partner American Capital has supported our growth plan and strategic vision with their additional investment to complete this transaction.  Their one stop financing ability, expertise in growing portfolio companies and deep knowledge of the life sciences industry make them a valuable partner for the combination of CML and AAIPharma and our future growth."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs